Markets Steady After Budget Shock as India Rolls Out Rules and Security Reforms

Investors reassess new taxes and allocations, with policymakers supporting liquidity and focusing spending on infrastructure and defence.

Overview

Indian equities stabilized following the post-Budget sell-off, shifting from a flat close to a relief rally as RBI interventions strengthened the rupee.
The Union Budget prioritized major rail, rare-earth, and port projects in Assam, West Bengal, Tamil Nadu and Kerala, alongside a significant increase in defence spending.
Regulatory changes that began on February 1 reshaped daily compliance, including updates to FASTag usage and tobacco regulations.
To address leadership shortages in security services, the Centre amended IPS empanelment rules to ease IG-level postings.
Pakistan announced it would boycott its T20 World Cup match against India, prompting the ICC to warn of serious consequences for not taking the field.