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On February 1, 2026, India's volatility index, known as India VIX, surged by 10.7% on Budget Day, marking a notable first in a decade where the index rose on such an occasion. The VIX peaked at an eight-month high of 16.11 before settling at 15.10, driven primarily by the government's increase in Securities Transaction Tax (STT), which triggered the sharpest intraday jump since November 2021. The India VIX, often referred to as a "fear gauge," reflects market sentiment and expectations of volatility over the next 30 days, indicating heightened investor caution amid ongoing geopolitical uncertainties and capital outflows. Analysts suggest that while selective stock opportunities may exist, the rising VIX signals potential market weakness, with projections indicating it could climb further, possibly reaching 20, before any stabilization occurs. Investors are advised to remain vigilant as the market navigates these turbulent conditions. 
Published: Feb 01 2026, 8 pmeznews.inCommerce and Industry Minister Piyush Goyal has outlined how the Union Budget 2026-27 aims to enhance exports, attract investments, and generate employment, particularly in labour-intensive sectors such as textiles, marine, and leather. In an interview with _businessline_, Goyal emphasized the budget's potential to bolster India's position in global trade, especially through incentives for data centres, which will receive a tax holiday until 2047, encouraging foreign investment and job creation. He noted that infrastructure spending has increased by 10%, with an allocation of ₹12.2 lakh crore, which will further stimulate economic growth. Goyal also discussed new measures allowing Special Economic Zone (SEZ) units to sell a portion of their production domestically, aimed at reducing imports. He expressed optimism about reaching a $2 trillion export target by 2032-33, supported by free trade agreements and simplified business regulations, while also highlighting plans to promote the leather and footwear sectors through potential new schemes.
Published: Feb 01 2026, 9 pmeznews.inR. Dinesh, Chairman of TVS Supply Chain Solutions Ltd., has praised the Union Budget for its commitment to continuity and credibility amid global economic uncertainties. The Finance Minister's target of a 4.3% fiscal deficit underscores the government's dedication to balancing growth with macroeconomic discipline. With a substantial allocation of ₹12.2 lakh crore for capital expenditure, the budget signals a long-term strategy for infrastructure investment, focusing on efficiency and integration rather than mere capacity creation. Key initiatives, such as new Dedicated Freight Corridors and the development of 20 National Waterways, aim to enhance logistics and connectivity. Additionally, measures to strengthen manufacturing and attract foreign investment, including a streamlined customs process and support for MSMEs through a ₹10,000 crore Growth Fund, are set to bolster India's role in global supply chains. Overall, the budget positions India as a competitive player in international trade, emphasizing efficiency and ease of doing business.
Published: Feb 01 2026, 9 pmeznews.inTwo budget proposals aim to streamline the Tax Deducted at Source (TDS) process, addressing distinct challenges faced by retail investors and small taxpayers. The first proposal, under the Finance Bill 2026, allows investors who regularly submit Forms 15G or 15H to file a single declaration with a recognized depository, simplifying the process for income from mutual funds, securities, and dividends. This change, effective from April 1, 2027, will reduce repetitive submissions and the risk of missing declarations. However, it applies only to listed securities held through a depository. The second proposal introduces an online system for small taxpayers to obtain certificates for lower or nil TDS deductions, reducing reliance on Assessing Officers and expediting the process. This reform, set to take effect a year earlier on April 1, 2026, aims to alleviate cash-flow stress for professionals and small businesses facing high TDS rates.
Published: Feb 01 2026, 9 pmeznews.inIn a significant move to enhance the efficiency of state-controlled non-banking financial companies (NBFCs), India's Finance Minister Nirmala Sitharaman announced a proposal to restructure the Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) during the recent budget presentation. This initiative aims to improve credit flows and execution within the electricity and infrastructure sectors, aligning with the government's vision for a developed economy. Experts, including Sambitosh Mohapatra from PwC India, hailed the restructuring as a transformative step that could unlock vital capital for the ₹12.2 lakh crore capital expenditure cycle. Raju Kumar from EY India emphasized that this change could enhance credit flow and execution discipline in the power sector. The proposed restructuring is expected to facilitate a more predictable capital flow, supporting renewable energy developers and positioning India as a key player in the global energy transition.
Published: Feb 01 2026, 9 pmeznews.inPrime Minister Narendra Modi praised the Union Budget 2026-27 as "ambitious and futuristic," emphasizing its role in realizing the aspirations of India's 140 crore citizens and laying the groundwork for a developed India by 2047. Speaking in the Lok Sabha, Modi highlighted the budget's focus on enhancing India's global standing and its ambition to become the world's third-largest economy. He described it as a "Youth Power Budget," aimed at fostering innovation and leadership among the youth through initiatives in health, tourism, and the creative economy. The budget also prioritizes women's empowerment through self-help groups and aims to improve educational access for female students. Modi commended Finance Minister Nirmala Sitharaman for presenting a budget that balances fiscal responsibility with high capital expenditure, while also addressing the needs of agriculture, dairy, and fisheries, ultimately dedicated to the welfare of villages and the underprivileged.
Published: Feb 01 2026, 9 pmeznews.inIn a significant move to bolster India's IT sector, the Union Budget has proposed consolidating various IT-related business segments into a single "Information Technology Services" category, featuring a uniform safe harbour margin of 15.5 percent and an increased eligibility threshold from ₹300 crore to ₹2,000 crore. Finance Minister Nirmala Sitharaman announced that the safe harbour approvals will now be automated, eliminating the need for tax officer scrutiny, and allowing companies to maintain the same safe harbour for five years. The Budget also aims to expedite the Unilateral Advance Pricing Agreement (APA) process, addressing long-standing concerns about timelines. Industry body Nasscom welcomed these changes, highlighting their potential to enhance tax certainty and reduce compliance costs. Wipro's CFO and GlobalLogic's APAC head emphasized that these reforms will not only ease operational challenges but also position India as a competitive global hub for IT services amidst shifting global economic conditions.
Published: Feb 01 2026, 8 pmeznews.inFinance Minister Nirmala Sitharaman has delivered nine Budgets since July 2019, navigating the Indian economy through the pandemic, recovery, and global uncertainties. An analysis of Budget Day returns across 16 major sectors reveals significant disparities, with the Nifty 100 achieving positive returns on only three occasions. The FMCG sector emerged as the strongest performer, recording gains on seven of the nine Budget days, highlighting its defensive nature. Conversely, the Oil & Gas sector struggled, with only one positive session, reflecting ongoing investor concerns over pricing controls and regulatory issues. The Financial Services sector exhibited mixed results, with three positive and six negative closes, indicating its sensitivity to fiscal policies. In the latest 2026 Budget, most sectors declined, except for Nifty IT, which gained 1.3%. Overall, recent Budgets have favored consumption-linked sectors, while commodity-heavy segments lagged, underscoring the importance of sectoral positioning over index exposure.
Published: Feb 01 2026, 8 pmeznews.inIn a significant move to bolster domestic manufacturing, the Indian government has removed or reduced basic customs duties on key capital goods and strategic inputs across various sectors, including nuclear energy, clean energy, healthcare, and electronics. Finance Minister Nirmala Sitharaman emphasized that these changes aim to simplify the tariff structure, enhance export competitiveness, and correct duty inversions. While duties on essential items like lithium-ion cells and 17 healthcare drugs have been exempted, tariffs on certain consumer goods, such as potassium hydroxide, have been increased. Experts believe these measures will facilitate technology-led exports from the US to India and improve market access for American exporters in high-value sectors. Additionally, the government plans to implement a Customs Integrated System within two years to streamline customs processes, transitioning to a trust-based, digital framework that promises faster clearances and enhanced support for cross-border e-commerce.
Published: Feb 01 2026, 8 pmeznews.inConsumer product companies have welcomed the Union Budget's focus on sustained public investments and support for MSMEs, viewing it as a strategic move to enhance consumption rather than a short-term populist approach. Saugata Gupta, MD & CEO of Marico Ltd, highlighted the budget's commitment to manufacturing growth and agricultural income enhancement, which he believes will positively impact rural demand. Naveen Malpani from Grant Thornton Bharat noted that improved access to equity and liquidity for MSMEs could stimulate investments in smaller cities, fostering broader consumer demand. Mohit Malhotra, CEO of Dabur India, emphasized the budget's continuity and resilience, particularly its focus on tier-2 and tier-3 cities to expand the market for branded products. Kumar Rajagopalan, CEO of the Retailers Association of India, cautioned that while the budget aims to create a conducive environment for retail, its effects on consumption will be gradual and uneven, driven by supply chain improvements and regional demand growth.
Published: Feb 01 2026, 8 pm
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