Archive for February 1st, 2026

Indian stock markets were expected to open higher on Sunday ahead of the presentation of the 2026–27 Union Budget by Finance Minister Nirmala Sitharaman, as investors looked for cues on government support for economic growth and export-oriented sectors.
In early trading, GIFT Nifty futures were indicating a positive start, suggesting the NSE Nifty 50 could open above its previous close of 25,320.65. Markets were operating in a special trading session on budget day, while debt and foreign exchange markets remained shut.

India’s federal government has announced a record increase in infrastructure spending, raising the capital expenditure allocation to ₹12.2 trillion ($133.1 billion) for the fiscal year 2026–27, Finance Minister Nirmala Sitharaman said in the Union Budget presented on February 1, 2026. This marks an 11.4% annual rise over previous allocations as the government continues to prioritise infrastructure as a key engine of economic growth.

India’s federal government has decided to maintain the share of tax revenue distributed to state governments at 41% for the five-year period from 2026 to 2031, Finance Minister Nirmala Sitharaman announced in the 2026–27 Union Budget presentation in Parliament on February 1, 2026.

Foreign institutional investors (FIIs) have pulled a staggering $23 billion out of Indian equities, with about $19 billion exiting in 2025 and another $4 billion in January 2026, raising alarm bells for Indian markets ahead of the Union Budget 2026. The sharp outflow is driven by a weaker rupee and lower post-tax returns, which make high-valued Indian stocks less attractive compared with safer opportunities in developed markets.