Overview. After a volatile start, Indian benchmarks recovered sharply from the previous session’s Budget‑day sell‑off. The Nifty 50 climbed more than 260 points to finish above 25,000, while the Sensex rallied nearly 944 points. Buying interest in capital‑goods, refinery and consumption names outweighed weakness in technology and pharma stocks. Overall market breadth was slightly negative, with roughly 2,139 advancing stocks versus 2,470 declining out of ~4,609 traded counters. Market capitalisation rose by about ₹4.65 lakh crore during the session.
Sectoral performance
Sector/Index (approximate)**
Trend
Infrastructure / Capital goods (Nifty Infra)
+2.3 % – capital‑goods and engineering‑services stocks were the day’s star performers, buoyed by expectations of higher infrastructure spending following the Budget.
Refineries & power generation
Gains around +2 % to +3 % as oil‑marketing companies and power producers rallied; investors saw value after the previous session’s fall.
Automobiles
+1.5 % to +1.7 %, helped by hopes of robust demand and favourable policy cues.
FMCG & Consumption
+0.5 % to +1 %, reflecting defensive buying.
Banks & financials
Flat to +0.7 %; public‑sector banks were subdued on concerns about government borrowing, but private lenders recovered late.
Telecom services & insurance
+0.3 % to +0.5 %, modest gains.
Metals / Commodities
Up ~1 %; metal and oil‑and‑gas stocks bounced back.
Most‑active stocks by volume: Bharat Electronics (~43.6 million shares traded), Power Grid Corp (37.1 million), ITC (35.2 million), Eicher Motors (~34.2 million) and HDFC Bank (~29 million) were among the busiest counters.
What moved the market
Technical rebound after Budget sell‑off: Sentiment was weak after a sharp fall during the Budget session, leaving indices oversold. Traders noted that the Nifty put‑call ratio dropped to ~0.58; the index found strong support around 24,675–24,800 and rebounded from there.
Budget‑driven themes: Infrastructure‑linked and capital‑goods stocks surged on hopes that higher capital expenditure allocations and PLI incentives would translate into order wins. Refineries and power producers gained as investors anticipated better profitability under the new energy transition policies.
Stock‑specific action: Power Grid led gains as investors cheered prospects of higher grid‑expansion spending. Tata Motors rose on strong January sales and optimism for the passenger‑vehicle division. Adani Ports rallied after management commentary suggesting improving volumes.
F&O tax jitters ease: Despite continued concerns about the proposed increase in the securities transaction tax on derivatives trading, capital market stocks saw mixed moves. Some brokerage and exchange stocks (BSE, CDSL, Angel One) remained under pressure.
Weak global cues ignored: Overnight, US indices finished lower (NASDAQ –1.1 %, Dow –0.36 %, S&P 500 –0.70 %), and Asian markets were mixed (Nikkei +0.31 %, Hang Seng –1.76 %, Shanghai Composite –2.48 %). Crude oil futures slid ~3.5 %, but the rupee strengthened slightly against the US dollar. Indian markets managed to shrug off these external headwinds due to domestic buying.
Institutional flows: Foreign institutional investors (FIIs) remained net sellers on 1 February (₹588 cr sold), and domestic institutional investors (DIIs) also sold ₹683 cr. Despite this, short‑covering and retail buying drove the day’s recovery.
Global cues summary
Region / Asset
Performance
United States
Major indices closed lower on 1 Feb: NASDAQ –1.10 %, Dow –0.36 %, S&P 500 –0.70 %. Investors fretted over elevated bond yields and mixed earnings reports.
Europe
European indices such as FTSE 100 (+0.42 %), CAC 40 (+0.69 %) and DAX (+0.99 %) ended higher on Thursday on strong corporate earnings and hopes of a mild economic slowdown.
Asia
Nikkei 225 rose 0.31 %, while Hang Seng (–1.76 %) and Shanghai Composite (–2.48 %) fell sharply amid concerns over China’s property sector and weaker commodity demand.
Commodities
Crude oil prices fell ~3.5 % on oversupply worries; natural gas slumped ~15 %. Gold edged up 0.27 %, while silver jumped 5 %.
Currency
The USD/INR hovered around 91.77, marginally higher (+0.14 %), reflecting a mildly stronger dollar.
Corporate updates & stocks to watch
Earnings calendar: Tata Chemicals, UPL, City Union Bank, Honeywell Automation and PB Fintech are set to release quarterly results on 3 Feb; investors will watch commentary on margins and demand.
Dividend and corporate actions: Balkrishna Industries (₹4 interim dividend), BPCL (₹10 interim), LT Foods (₹1 interim) and Metro Brands (₹3 interim) trade ex‑dividend. MOIL raised manganese‑ore prices by 5 % effective 1 Feb. Coal India reported January production of 79.8 mn tonnes (+2.6 % YoY) while sales fell 4.7 %.
Sectoral triggers:
Capital‑market stocks (BSE, CDSL, Angel One) remain in focus as the Budget proposed a higher securities‑transaction tax on F&O trades.
Auto stocks (Hero MotoCorp, Tata Motors, Mahindra & Mahindra) are reacting to January sales numbers; strong PV sales support the sector.
Oil & gas stocks: BPCL trades ex‑dividend; energy stocks may respond to crude‑price volatility.
Defence & aerospace: Bharat Dynamics and Hindustan Aeronautics could move on order inflows and Budget allocations.
Consumption & FMCG: ITC, Godrej Consumer and Hindustan Unilever may see buying interest as there was no tax hike on cigarettes and consumer staples.
Company‑specific news: Quess Corp faces a ₹159.9 cr tax demand; Shriram Finance received a tax notice of ₹96 lakh. PG Electroplast and Latent View Analytics announce results. Indus Towers reports earnings post‑market; investors will monitor tenancy additions and cash‑flow trends.
Technical outlook and tomorrow’s tone (3 February 2026)
Support and resistance levels: Technical analysts note that the Nifty staged a bullish reversal on daily charts after testing the 24,675–24,800 support zone. Immediate supports for the next session lie around 24,900 and 24,675. On the upside, resistance is expected near 25,150–25,250, with a further hurdle at 25,350 (close to the 200‑day simple moving average). For the Sensex, support is around 81,200–80,400, while resistance sits near 82 200–82 500. Bank Nifty has support at 57,825–58,125 and resistance near 58,500–58,800.
Momentum and tone: Although Friday’s bounce was impressive, the broader trend remains cautious because the indices are still below their 200‑day moving averages and FII flows remain negative. Traders may use further rallies to lighten long positions. As long as the Nifty sustains above 24,900, the market could attempt a further pull‑back towards 25,250–25,350. Failure to hold 24,900 could invite renewed selling. Volatility is expected to remain elevated due to mixed global cues and ongoing earnings announcements. Overall, the tone for 3 February is cautiously optimistic with a range‑bound bias, and stock‑specific moves linked to earnings and Budget themes will likely dominate.
