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The impact of the Interim Budget on equity markets will be neutral to mildly positive for the near term and other emerging triggers will drive its trajectory later, HDFC Securities MD & CEO Dhiraj Relli said.

The FY25 interim Budget has come out better than expected even though the heightened expectations on many changes/giveaways have rightfully not been met now, he said.

The resolve to continue fiscal consolidation path will be appreciated by global and local investors. Better than street expectations of fiscal deficit for FY24 and FY25 and the consequent lower borrowings target in FY25 has enthused the bond markets. Announcements on Rail infra spend and 11.1 per cent rise in overall capex would be in line with most expectations, he added.

Wright Research Manager Founder Sonam Srivastava said: "The market's reaction to these announcements has been mixed, with positive movements in the FMCG sector, attributed to measures expected to boost consumer spending power. Conversely, railway stocks saw a decline, possibly due to concerns over the execution and immediate impact of the infrastructure projects announced. Overall, the muted market response underscores a cautious optimism, with investors looking for more clarity on the implementation of budget proposals."