Dalal Street claws back losses after budget-day drubbing

Markets bounced back in early trade despite weak global cues after the Union Budget triggered heavy selling a day earlier

PGurus Newsdesk

February 2, 2026

Markets rebound in early trade after sharp budget-day selloff

Benchmark equity indices Sensex and Nifty rebounded in early trade on Monday, supported by value buying in blue-chip stocks, a day after markets witnessed a sharp selloff following the Union Budget announcement.

The 30-share BSE Sensex rose 302 points to 81,024.94 in initial trade, while the NSE Nifty climbed 59.25 points to 24,884.70.

Among Sensex constituents, Adani Ports, Larsen & Toubro, Asian Paints, Bharat Electronics, Reliance Industries, Power Grid and HDFC Bank were trading higher. Stocks such as Trent, Titan, ITC and Hindustan Unilever lagged the broader market.

Markets had slumped sharply on Sunday after the presentation of the Union Budget for 2026–27, with key indices plunging nearly 2 per cent during the special trading session. The selloff was triggered largely by an increase in the securities transaction tax on equity derivatives, which unsettled investor sentiment.

Finance Minister Nirmala Sitharaman, in her budget speech, announced measures aimed at boosting manufacturing, offering long-term tax incentives for global data centres, and extending support to agriculture and tourism. The Rs 53.5 lakh crore budget was positioned as a long-term roadmap for sustaining economic growth amid rising global uncertainties, while maintaining fiscal discipline.

Despite the recovery in early trade, broader market sentiment remained cautious. On Sunday, the Sensex had closed at 80,722.94, down 1,546.84 points or 1.88 per cent, while the Nifty ended 495.20 points lower at 24,825.45.

Foreign institutional investors continued to remain net sellers, offloading equities worth Rs 588.34 crore, according to exchange data.

Global cues were weak, with major Asian markets trading lower. South Korea’s Kospi fell over 4 per cent, while Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng also declined. US markets ended lower on Friday.

Meanwhile, Brent crude oil prices slipped 4.14 per cent to USD 66.45 per barrel, adding to the mixed global outlook.

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