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Union Budget 2026: Why Budget announcements matter for stock market direction

With markets open on Budget day, Union Budget 2026 is set to influence stock movements as investors track growth measures, taxation changes and the fiscal deficit.

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Stock market

The Union Budget remains one of the most closely watched events in India’s financial calendar, with stock markets often reacting sharply to policy signals. This year, trading will continue on Budget day — February 1 — despite it falling on a Sunday, allowing investors to respond immediately to announcements.

Finance Minister Nirmala Sitharaman will present her ninth consecutive Union Budget, an event that is expected to set the tone for market sentiment in the near term.

Growth-focused policies and investor sentiment

Equity markets generally respond positively when the Budget outlines steps aimed at supporting economic growth. Measures such as infrastructure spending, business-friendly reforms or incentives for key industries tend to improve investor confidence.

When such policies signal long-term expansion, markets often factor in stronger earnings prospects, leading to upward movement in stock prices.

Consumer spending and sectoral gains

Budget proposals that increase disposable income can also influence market behaviour. Tax relief measures, direct support schemes or efforts to manage inflation may leave households with more spending power.

Higher consumer spending typically benefits sectors such as retail, automobiles and fast-moving consumer goods, with increased demand often reflected in company valuations.

Tax changes and market participation

Tax-related announcements play a crucial role in shaping investment decisions. Lower taxes for individuals or businesses can support consumption and profitability, encouraging further investment activity.

At the same time, changes to capital gains or dividend taxation directly affect investor behaviour. Favourable tax treatment can lead to higher participation in equity markets, while tighter taxation may weigh on sentiment.

Fiscal deficit remains a key indicator

Markets also keep a close watch on the fiscal deficit — the difference between government spending and revenue. A higher deficit can raise concerns around increased borrowing, inflationary pressure and interest rates, all of which may affect corporate performance.

Conversely, a controlled deficit is often seen as a sign of fiscal discipline, helping strengthen confidence among investors.

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Delhi-NCR gets rain, strong winds as IMD issues thunderstorm alert

Rain and strong winds lashed Delhi-NCR, bringing relief from the heat as the IMD forecast more thunderstorms and gusty conditions in the coming days.

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Delhi-NCR experienced rain, thunderstorms and strong winds on Tuesday, bringing much-needed relief from the prevailing heat conditions across the region. Several parts of the national capital, along with Noida, Gurugram and Ghaziabad, witnessed a sudden change in weather, accompanied by dust storms and gusty winds.

The India Meteorological Department (IMD) has forecast more spells of light rain and thunderstorms in Delhi and adjoining areas. The weather department said partly cloudy conditions are likely to persist, with thunderstorms, lightning and strong surface winds expected during the afternoon and evening hours over the next few days.

According to the IMD, wind speeds during thunderstorms could reach 40-50 kmph and may gust up to 60 kmph in some areas. The weather office has advised residents to remain cautious during thunderstorm activity and avoid taking shelter under trees or near weak structures.

The showers led to a noticeable drop in temperatures, offering relief from the intense summer heat. Earlier, squally winds with speeds touching 91 kmph were recorded at Palam during a thunderstorm episode, highlighting the intensity of recent weather activity in the capital.

Meteorologists attributed the changing weather pattern to favourable atmospheric conditions and advancing monsoon activity over parts of north India. Similar weather conditions, including thunderstorms and gusty winds, are expected to continue intermittently across Delhi-NCR in the coming days.

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Mamata Banerjee, rebel camp stake claim to real Trinamool before Election Commission

The battle for control of the Trinamool Congress has reached the Election Commission, with both Mamata Banerjee and the rebel faction staking claim to the party.

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Mamata Banerjee

The internal crisis within the All India Trinamool Congress (AITC) has escalated, with both the camp led by Mamata Banerjee and the rebel faction approaching the Election Commission over claims to the party’s leadership and organisational control.

The latest development comes amid an intensifying power struggle within the party following the formation of a parallel leadership structure by dissident leaders. The rebel group, led by Ritabrata Banerjee, has asserted that it represents the “real” Trinamool and has sought official recognition from the poll panel.

Rival camps approach Election Commission

On Tuesday evening, members of the rebel faction met officials of the West Bengal Chief Electoral Officer and reiterated their claim that they are the legitimate organisational face of the Trinamool Congress. The dissident camp has already announced a separate National Working Committee and appointed its own leadership team.

In response, Mamata Banerjee’s camp has moved swiftly to reinforce its authority. The faction led by the former West Bengal chief minister submitted a fresh list of office-bearers and a reconstituted National Working Committee to the Election Commission, asserting that Mamata Banerjee remains the chairperson of the party.

Internal turmoil deepens

The confrontation marks a new phase in the turmoil that has gripped the Trinamool Congress after its defeat in the 2026 West Bengal Assembly elections. Several senior leaders, including some long-time associates of Mamata Banerjee, have joined the rebel camp, further deepening divisions within the party.

With both factions staking claim to the party’s identity and organisational machinery, the Election Commission may now have to examine competing submissions before deciding on the issue of recognition and control.

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Vijay promises gold rings for newborns in Tamil Nadu under TVK welfare plan

The Tamil Nadu government has introduced the ‘Thai Maman Gold Ring Scheme,’ allocating Rs 755.83 crore annually to gift a one-gram gold ring to every child born in state-run hospitals.

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Actor vijay

In a unique welfare initiative, Tamil Nadu Chief Minister Vijay is set to launch the ‘Thai Maman Gold Ring Scheme’ across the state. Under this program, every child born in government hospitals will be gifted a one-gram gold ring. To fund the project, the state government has designated an annual allocation of Rs 755.83 crore.

The Chief Minister has already instructed state officials to immediately begin the tender process required to roll out the initiative.

Eligibility and official launch timeline

Children born in government hospitals on or after June 22, 2026—coinciding with the Chief Minister’s birthday—will be eligible to receive the benefit. While the eligibility begins in June, the scheme will see its formal, official launch later in the year on September 15, 2026, marking the birth anniversary of Perarignar Anna.

Cultural roots and inspiration

According to an official government release, the welfare scheme draws direct inspiration from “Thai Maman Seer,” a deeply rooted Tamil cultural tradition where a maternal uncle presents blessings and gifts to a newborn baby. Through this initiative, the state government will symbolically assume the responsibilities of a maternal uncle, presenting the one-gram gold ring as a token of care, affection, and welcome.

The administration noted that the initiative is designed to preserve and reflect Tamil cultural heritage while offering a symbol of support and love to newborns and their respective families.

From election promise to institutional welfare

The ‘Thai Maman Gold Ring Scheme’ originally formed a key component of the Tamilaga Vettri Kazhagam’s election promises and was highlighted in the government’s ‘Vetri Thamizhagam Vision Document’.

While political organizations in the region have historically distributed gold rings to infants born in government facilities on their leaders’ birthdays, this initiative represents the first time the practice has been institutionalized as an official state government welfare scheme.

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