Sensex, Gold and Silver Slide Sharply After Union Budget Announcements

Mumbai: Domestic financial markets witnessed a sharp sell-off on Saturday after the presentation of the Union Budget, with equities as well as precious metals coming under pressure. The benchmark Sensex plunged in early trade, while gold and silver prices also declined, reflecting cautious sentiment among investors.

Market participants reacted negatively to the Budget’s lack of fresh tax reliefs and limited short-term stimulus measures. Heavy selling was seen in banking, metal and IT stocks, dragging the Sensex lower by several hundred points. The broader markets also mirrored the weak trend, with key indices trading in the red.

At the same time, gold and silver prices fell sharply in the domestic market as investors booked profits amid expectations of fiscal discipline and stable inflation outlook. Analysts said reduced uncertainty over tax policy and controlled government spending lowered the immediate demand for safe-haven assets like precious metals.

Experts noted that while the Budget focused on long-term structural reforms, healthcare, manufacturing and fiscal consolidation, the absence of direct incentives for markets led to short-term disappointment. “The Budget is growth-oriented in the long run, but markets were hoping for stronger triggers,” said a market analyst.

Global cues also added to the pressure, with mixed signals from overseas markets and concerns over high US interest rates affecting investor appetite for risk assets.

However, analysts believe the volatility may be temporary. They expect markets to stabilise as investors digest the Budget proposals and focus on long-term benefits from increased capital expenditure, reforms and sector-specific initiatives.

For now, the sharp fall in the Sensex and precious metals underscores the market’s immediate reaction, even as the broader economic outlook remains cautiously optimistic.