TITLE: Post-Market Report: Indian Indices Stage Strong Rebound as Value Buying Trumps Budget Blues

SUMMARY: The Indian equity markets witnessed a robust recovery on Monday, February 02, 2026, as the Sensex and Nifty recouped a significant portion of their Budget-day losses. Driven by aggressive value buying in blue-chip heavyweights and a strengthening rupee, the benchmark indices finished over 1% higher despite initial volatility.

CONTENT:

Market Performance Today

The Indian stock market bounced back sharply from the "Budget hangover" that saw indices tank nearly 2% in the previous special session. The BSE Sensex closed at 81,666.46, up 943.5 points or 1.17%. Similarly, the NSE Nifty 50 advanced 263 points or 1.06% to end the day at 25,088.40. The day was marked by high intraday volatility, with the Sensex swinging over 1,300 points from its lows before a massive fag-end buying spree in the final hour of trade secured the gains.

Top Movers (Sectors and Stocks)

Buying interest was concentrated in heavyweights and infrastructure-linked names, while interest-rate-sensitive and export-oriented sectors saw mixed results.

Top Gainers:

• Power Grid: Surged 7.6% after management reiterated strong capex guidance for FY26.
• Adani Ports: Gained 5% as investors cheered the long-term infrastructure focus in the Budget.
• Reliance Industries (RIL): Rose over 3%, providing the heaviest lifting for the Nifty.
• Other notable gainers: Bharat Electronics (BEL), Larsen & Toubro (L&T), Mahindra & Mahindra (M&M), and ICICI Bank.

Top Losers:

• Shriram Finance: Declined over 5% as the NBFC sector faced pressure.
• Hindalco: Dropped 4.2% following a weak trend in international metal markets.
• IT Stocks: Infosys and TCS ended in the red as the sector remained under pressure despite Budget pushes for AI.
• Max Healthcare: Witnessed selling pressure, ending as one of the major laggards.

Key Drivers of Today's Market

Several factors contributed to the sharp reversal in market sentiment:

• Value Buying: After the sharpest Budget-day fall since 2020, bargain hunters entered the market to pick up blue-chip stocks at attractive valuations.
• Rupee Recovery: The Indian rupee strengthened significantly, gaining 37 paise to reach 91.56 against the US dollar, aided by a retreat in global crude oil prices.
• Budget Reassurance: While the hike in Securities Transaction Tax (STT) on derivatives initially spooked traders, investors began focusing on the long-term growth measures for manufacturing, data centers, and tourism.
• Cooling Volatility: The India VIX (Volatility Index) slipped by 8%, indicating that the immediate panic following the tax changes in the Budget has started to subside.

Broader Market Performance

The broader market also participated in the rally, though they slightly underperformed the front-line indices.

• BSE MidCap: Ended 0.5% higher.
• BSE SmallCap: Finished with gains of 0.8%.
• Market Breath: Despite the positive closing for indices, the overall market breadth remained somewhat cautious as investors rotated capital into large-cap safety.

TAGS: Post-Market, Stock Market, Nifty, Sensex, Market Analysis