Indian Stock Market on Recovery Mode: Sensex and Nifty Rebound After Budget Day

Indian markets are showing signs of recovery, with the Nifty rebounding sharply by over 100 points, edging closer to 25,000 after yesterday’s sharp decline. The Sensex mirrored this upswing, climbing nearly 400 points to surpass the 81,000 level.
The Nifty Bank index, which had earlier slumped nearly 1,500 points and flirted with the 58,000 mark, also staged a recovery, gaining over 50 points after trading in negative territory during the day.
STT Hike Dampened Investors Sentiment
Investor attention is likely to remain on railway and defence stocks, as well as capital market names such as BSE, Angel One, and Groww, amid analysts’ warnings of potential earnings pressures following the STT hike. Precious metals, particularly gold and silver, also continued to draw market focus as they saw significant selling pressure.
The trading session was marked by heightened volatility and mixed sectoral trends. While blue-chip and heavyweight stocks attracted value-driven buying, other segments, especially capital market and derivatives-linked shares, lagged, reflecting caution over rising trading costs.
Conclusion
Overall, the market showed a measured recovery following Sunday’s sharp Budget-related sell-off. Investors appeared to balance optimism about long-term fiscal priorities with short-term policy uncertainties, setting the stage for a cautiously constructive start to the week.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 2, 2026, 12:45 PM IST

Sachin Gupta
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