Sectoral performance remained largely positive, with all indices ending in the green except Nifty IT, which declined 0.50 per cent. | Photo Credit: iStockphoto
Benchmarks staged a sharp recovery on Monday, with the Sensex surging 943.52 points or 1.17 per cent to close at 81,666.46, recouping a significant portion of the previous session’s steep Budget-day losses. The Nifty rose 262.95 points or 1.06 per cent to settle at 25,088.40, recovering a remarkable 429 points from its intraday low of 24,679.
The rally was led by power gridwhich surged 7.42 per cent to ₹270.00, emerging as the top gainer on the Nifty50. Tata Motors (Passenger Vehicles) jumped 5.61 per cent to ₹364.00, while Adani Ports climbed 4.28 per cent to ₹1,402.50. Bharat Electronics Limited advanced 3.63 per cent to ₹440.80, and Tata Consumer Products gained 3.11 per cent to ₹1,121.10.
However, selling pressure was visible in select financial and healthcare stocks. Shriram Finance led the decliners, falling 3.17 per cent to ₹966.00, followed by Axis Bankwhich dropped 2.33 per cent to ₹1,309.20. Max Healthcare declined 1.82 per cent to ₹958.95, Infosys slipped 1.66 per cent to ₹1,627.00, and Cipla shed 1.08 per cent to ₹1,314.50.
“The market witnessed a smart recovery following yesterday’s volatile session due to the impact of the STT hike on F&O and the government’s higher borrowing plan for FY27,” said Vinod Nair, Head of Research at Geojit Investments Limited. “At the same time, the Budget’s policy continuity with a clear emphasis on growth and fiscal prudence has helped reinforce confidence in the medium to long-term earnings outlook.”
Sectoral performance remained largely positive, with all indices ending in the green except Nifty IT, which declined 0.50 per cent. The Capital Market Index outperformed, rallying over 3 per cent, while Nifty Auto surged 2.1 per cent backed by strong monthly sales numbers. Nifty Oil & Gas gained 2 per cent, supported by lower crude oil prices. Nifty FMCG, metals, energy, infrastructure and realty stocks rose 1–2 per cent.
Broader markets mirrored the recovery, with the Nifty Midcap 100 rising 0.96 per cent to 57,667.60 and the Nifty Smallcap 100 gaining 0.64 per cent to 16,523.35. The Nifty Next 50 advanced 1.07 per cent to 67,073.20. Market breadth remained slightly weak, with 2,039 stocks advancing against 2,220 declines on the BSE, where 4,428 stocks were traded. The advance-decline ratio stood at 0.93. Seventy-six stocks hit 52-week highs, while 360 touched 52-week lows.
The Indian rupee strengthened sharply, gaining 47 paise to close at 91.51 against the US dollar, supported by easing commodity prices and robust foreign exchange reserves. “A combination of cooling commodity prices, enhanced fiscal control, large forex reserves and suspected corporate dollar selling has provided a tailwind for the local currency,” said Dilip Parmar, Research Analyst at HDFC Securities. “In the near term, the USDINR spot is likely to consolidate within a tight range, finding support at 91.10 and facing resistance near 91.85.”
Brent crude oil prices fell sharply, down over 4 per cent to $66.45 per barrel. “A sharp decline in global crude oil prices has also offered some relief, reflecting signs of easing geopolitical tensions between the US and Iran,” Nair added.
“Nifty has now retraced 61.8 per cent of the entire decline seen in the 1st February 2026 Budget session,” said Nandish Shah, Deputy Vice President at HDFC Securities. “14 Days RSI is moving higher with a positive divergence on the Nifty daily chart, which is an early sign of emerging strength.”
Looking ahead, markets are expected to remain volatile as investors digest third-quarter earnings and await the Reserve Bank of India’s monetary policy decision this week. “Stock-specific action is likely to remain prominent as the Q3 earnings season gathers pace,” said Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services.
Published on February 2, 2026