Indian equities slumped sharply in mid trading session on Sunday as investors reacted nervously to the Union Budget, with broad-based selling dragging benchmark indices deep into the red. The sell-off was steeper in the broader market, where midcap and smallcap stocks slid 2–3 per cent, while all sectoral indices traded lower—led by PSU banks, financials, metals, chemicals and FMCG shares, which declined 2–4 per cent.
BSE Sensex was down 1,043.91 points, or 1.27 per cent, at 81,225.87 around 12.42 pm, after hitting an intraday low of nearly 2,400 points, while the Nifty 50 slipped 360 points, or 1.42 per cent, to 24,960.65, having fallen as much as 869 points earlier in the session.
Top movers
Max Health, Wipro, Sun Pharma, TCS and Dr Reddy’s Lab traded as major gainers, while Hindalco, Bharat Electronics, Shriram Finance, Coal India and SBI depreciated the most among Nifty 50 pack.
Market breadth remained weak, with declines far outnumbering advances in the session. Out of 3,113 stocks traded on the National Stock Exchange, as many as 1,938 traded lower, while only 1,083 advanced and 92 remained unchanged.
The number of stocks hitting 52-week lows at 160 sharply exceeded the 22 touching fresh highs, underscoring the risk-off mood. Meanwhile, 89 stocks were locked in the upper circuit, but a higher 99 hit the lower circuit, reflecting intense selling pressure across counters.
Sectoral impact following Budget
Defense stocks (BEL, GRSE and HAL), railway stocks such as BHEL, IRFC, IRCTC dragged following the budget presentation. Meanwhile, aqua and seafood stocks soared. Broking stocks witnessed pressure due to an increase in securities transaction tax (STT) on futures.
Shripal Shah, MD & CEO Kotak Securities, emphasized the steep increase in STT on futures and options will likely impact costs for traders, hedgers, and arbitrageurs. “This could cool derivative activity and lead to a reduction in volumes. The intent appears to be volume moderation rather than revenue maximization, as any potential revenue gain could be offset by lower derivative volumes.”
Under the midcap index, NTPC Green, Tata Communications, Swiggy, Motilal OFS and HUDCO rose 1-3 per cent, while National Aluminium, BSE, Muthoot Finance, BDL and Bank of India plunged 6-9 per cent.
Among smallcap, Anant Raj, Neuland Lab, IFCI, Zensar Tech and Trident soared 3-9 per cent, MCX, Hindustan Copper, Angel One, Nuvama, IIFL and Karur Vysya Bank shares dragged 6-13 per cent.
Despite the market trading in the red post-Budget, analysts remain constructive on several sectors. Abhinav Tiwari, Research Analyst at Bonanza, said infrastructure and capital goods are likely to emerge as key beneficiaries, citing the government’s decision to raise capital expenditure to ₹12.2 lakh crore.
Companies involved in construction, EPC, cement and industrial equipment are expected to see improved sentiment and earnings outlook.
“Higher allocations and policy support for electronics, semiconductors, chemicals, textiles, capital goods and container manufacturing strengthen India’s role as a global manufacturing hub. This is positive for electronics manufacturing services, specialty chemical companies and textile exporters, as it supports capacity expansion and long-term growth.
For banking and financials, the impact is largely neutral,” Tiwari said. He also highlighted that the budget is clearly supportive for IT services and data centres, pointing to tax certainty, higher safe-harbour limits and long-term tax incentives for global data-centre operations in India.
Published on February 1, 2026