Budget 2026: Sensex and Nifty's Worst Trading Day

The Budget 2026 has been a significant event for Indian stock markets, but unfortunately, it has not delivered the expected positive outcomes. On this day, both the Sensex and Nifty 50 recorded their worst trading performance in at least six years. This downturn is largely attributed to the absence of substantial incentives for foreign investors, a crucial segment for market stability and growth.

Since the beginning of 2025, foreign investors have withdrawn a staggering $23 billion from local equities, signaling a lack of confidence in the Indian market. This pullback has created a ripple effect, leading to heightened market volatility and a pessimistic outlook among domestic investors as well. The absence of any major announcements in the budget that could attract foreign investment has exacerbated these concerns.

The first budget of the Narendra Modi government in 2014 also saw a slight decline in the Sensex, but this year’s performance stands out as particularly troubling. Many market analysts believe that the government needs to take more proactive measures to instill confidence in both domestic and foreign investors. These measures could include tax incentives, infrastructure investments, and policies aimed at enhancing the ease of doing business in India.

As the economy grapples with these challenges, it is essential for policymakers to evaluate the current budgetary provisions critically. The feedback from market participants suggests that without a clear roadmap for growth and stability, the Indian markets may continue to face downward pressure.

In conclusion, Budget 2026 has raised significant concerns regarding the attractiveness of the Indian market to global investors. The government must take swift action to address these issues, or risk facing prolonged challenges in gaining investor confidence, which is crucial for economic recovery and growth.