{"id":10164,"date":"2026-02-02T11:23:45","date_gmt":"2026-02-02T11:23:45","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?p=10164"},"modified":"2026-02-02T11:23:47","modified_gmt":"2026-02-02T11:23:47","slug":"indian-market-outlook-2-february-2026-closing","status":"publish","type":"post","link":"https:\/\/lemonn.co.in\/blog\/market-updates\/indian-market-outlook-2-february-2026-closing\/","title":{"rendered":"Indian Market Outlook \u2013 2\u00a0February\u00a02026 (Closing)"},"content":{"rendered":"
\"nifty<\/figure>\n\n\n

Market snapshot<\/h2>\n\n\n\n
Index<\/th>Closing level<\/th>Pts change<\/th>% change<\/th><\/tr><\/thead>
Nifty 50<\/strong><\/td>25,088.40<\/td>+262.95<\/td>+1.06 %<\/strong><\/td><\/tr>
Sensex<\/strong><\/td>81,666.46<\/td>+943.52<\/td>+1.17 %<\/strong><\/td><\/tr>
Bank Nifty<\/strong><\/td>58,619.00<\/td>+201.80<\/td>+0.35 %<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Overview.<\/strong> After a volatile start, Indian benchmarks recovered sharply from the previous session\u2019s Budget\u2011day sell\u2011off. The Nifty\u00a050 climbed more than 260 points to finish above 25,000, while the Sensex rallied nearly 944 points. Buying interest in capital\u2011goods, 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 \u20b94.65\u00a0lakh\u00a0crore during the session.<\/p>\n\n\n\n

Sectoral performance<\/h2>\n\n\n\n
Sector\/Index (approximate)**<\/th>Trend<\/th><\/tr><\/thead>
Infrastructure \/ Capital goods<\/strong> (Nifty Infra)<\/td>+2.3 %<\/strong> \u2013 capital\u2011goods and engineering\u2011services stocks were the day\u2019s star performers, buoyed by expectations of higher infrastructure spending following the Budget.<\/td><\/tr>
Refineries & power generation<\/strong><\/td>Gains around +2 % to +3 %<\/strong> as oil\u2011marketing companies and power producers rallied; investors saw value after the previous session\u2019s fall.<\/td><\/tr>
Automobiles<\/strong><\/td>+1.5 % to +1.7 %<\/strong>, helped by hopes of robust demand and favourable policy cues.<\/td><\/tr>
FMCG & Consumption<\/strong><\/td>+0.5 % to +1 %<\/strong>, reflecting defensive buying.<\/td><\/tr>
Banks & financials<\/strong><\/td>Flat to +0.7 %<\/strong>; public\u2011sector banks were subdued on concerns about government borrowing, but private lenders recovered late.<\/td><\/tr>
Telecom services & insurance<\/strong><\/td>+0.3 % to +0.5 %<\/strong>, modest gains.<\/td><\/tr>
Metals \/ Commodities<\/strong><\/td>Up ~1 %<\/strong>; metal and oil\u2011and\u2011gas stocks bounced back.<\/td><\/tr>
Pharmaceuticals & Healthcare<\/strong><\/td>Slightly negative (around \u20130.1 %<\/strong>); selective profit\u2011taking.<\/td><\/tr>
Information Technology (Nifty IT)<\/strong><\/td>\u20130.5 %<\/strong>, continuing pressure from fears of slower global IT spending and STT hike on derivatives trading.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Note:<\/strong> Percentages are approximate; sector names correspond to NSE\/BSE broad themes rather than micro\u2011industries.<\/p>\n\n\n\n

Top 5 Nifty 50 gainers and losers<\/h2>\n\n\n\n
Gainers (Nifty 50)<\/strong><\/th>LTP (\u20b9)<\/strong><\/th>Change (\u20b9)<\/strong><\/th>Change (%)<\/strong><\/th><\/tr><\/thead>
Power Grid Corp.<\/strong><\/td>270.40<\/td>+19.05<\/td>+7.58 %<\/strong><\/td><\/tr>
Tata Motors PV<\/strong><\/td>362.90<\/td>+18.25<\/td>+5.30 %<\/strong><\/td><\/tr>
Adani Ports & SEZ<\/strong><\/td>1,403.10<\/td>+58.20<\/td>+4.33 %<\/strong><\/td><\/tr>
Tata Consumer Products<\/strong><\/td>1,125.40<\/td>+38.10<\/td>+3.50 %<\/strong><\/td><\/tr>
Bharat Electronics<\/strong><\/td>439.10<\/td>+13.75<\/td>+3.23 %<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Losers (Nifty 50)<\/strong><\/th>LTP (\u20b9)<\/strong><\/th>Change (\u20b9)<\/strong><\/th>Change (%)<\/strong><\/th><\/tr><\/thead>
Shriram Finance<\/strong><\/td>962.10<\/td>\u201335.50<\/td>\u20133.56 %<\/strong><\/td><\/tr>
Axis Bank<\/strong><\/td>1,311.50<\/td>\u201328.90<\/td>\u20132.16 %<\/td><\/tr>
Max Healthcare Institute<\/strong><\/td>958.10<\/td>\u201318.60<\/td>\u20131.90 %<\/td><\/tr>
Infosys<\/strong><\/td>1,629.40<\/td>\u201325.10<\/td>\u20131.52 %<\/td><\/tr>
Cipla<\/strong><\/td>1,311.60<\/td>\u201317.30<\/td>\u20131.30 %<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Most\u2011active stocks by volume:<\/strong> 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.<\/p>\n\n\n\n

What moved the market<\/h2>\n\n\n\n
    \n
  • Technical rebound after Budget sell\u2011off:<\/strong> Sentiment was weak after a sharp fall during the Budget session, leaving indices oversold. Traders noted that the Nifty put\u2011call ratio dropped to ~0.58; the index found strong support around 24,675\u201324,800 and rebounded from there.<\/li>\n\n\n\n
  • Budget\u2011driven themes:<\/strong> Infrastructure\u2011linked and capital\u2011goods 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.<\/li>\n\n\n\n
  • Stock\u2011specific action:<\/strong> Power\u00a0Grid led gains as investors cheered prospects of higher grid\u2011expansion spending. Tata\u00a0Motors rose on strong January sales and optimism for the passenger\u2011vehicle division. Adani\u00a0Ports rallied after management commentary suggesting improving volumes.<\/li>\n\n\n\n
  • F&O tax jitters ease:<\/strong> 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\u00a0One) remained under pressure.<\/li>\n\n\n\n
  • Weak global cues ignored:<\/strong> Overnight, US indices finished lower (NASDAQ \u20131.1\u00a0%, Dow \u20130.36\u00a0%, S&P\u00a0500 \u20130.70\u00a0%), and Asian markets were mixed (Nikkei +0.31\u00a0%, Hang\u00a0Seng \u20131.76\u00a0%, Shanghai Composite \u20132.48\u00a0%). Crude oil futures slid ~3.5\u00a0%, but the rupee strengthened slightly against the US dollar. Indian markets managed to shrug off these external headwinds due to domestic buying.<\/li>\n\n\n\n
  • Institutional flows:<\/strong> Foreign institutional investors (FIIs) remained net sellers on 1\u00a0February (\u20b9588\u00a0cr sold), and domestic institutional investors (DIIs) also sold \u20b9683\u00a0cr. Despite this, short\u2011covering and retail buying drove the day\u2019s recovery.<\/li>\n<\/ul>\n\n\n\n

    Global cues summary<\/h2>\n\n\n\n
    Region \/ Asset<\/th>Performance<\/th><\/tr><\/thead>
    United States<\/strong><\/td>Major indices closed lower on 1 Feb: NASDAQ \u20131.10 %, Dow \u20130.36 %, S&P 500 \u20130.70 %. Investors fretted over elevated bond yields and mixed earnings reports.<\/td><\/tr>
    Europe<\/strong><\/td>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.<\/td><\/tr>
    Asia<\/strong><\/td>Nikkei 225 rose 0.31 %, while Hang Seng (\u20131.76 %) and Shanghai Composite (\u20132.48 %) fell sharply amid concerns over China\u2019s property sector and weaker commodity demand.<\/td><\/tr>
    Commodities<\/strong><\/td>Crude oil prices fell ~3.5 % on oversupply worries; natural gas slumped ~15 %. Gold edged up 0.27 %, while silver jumped 5 %.<\/td><\/tr>
    Currency<\/strong><\/td>The USD\/INR hovered around 91.77, marginally higher (+0.14 %), reflecting a mildly stronger dollar.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    Corporate updates & stocks to watch<\/h2>\n\n\n\n
      \n
    • Earnings calendar:<\/strong> Tata\u00a0Chemicals, UPL, City\u00a0Union Bank, Honeywell\u00a0Automation and PB\u00a0Fintech are set to release quarterly results on 3\u00a0Feb<\/strong>; investors will watch commentary on margins and demand.<\/li>\n\n\n\n
    • Dividend and corporate actions:<\/strong> Balkrishna\u00a0Industries (\u20b94 interim dividend), BPCL (\u20b910 interim), LT\u00a0Foods (\u20b91 interim) and Metro\u00a0Brands (\u20b93 interim) trade ex\u2011dividend. MOIL raised manganese\u2011ore prices by 5\u00a0% effective\u00a01\u00a0Feb. Coal\u00a0India reported January production of 79.8\u00a0mn tonnes (+2.6\u00a0% YoY) while sales fell 4.7\u00a0%.<\/li>\n\n\n\n
    • Sectoral triggers:<\/strong>\n
        \n
      • Capital\u2011market stocks<\/strong> (BSE, CDSL, Angel\u00a0One) remain in focus as the Budget proposed a higher securities\u2011transaction tax on F&O trades.<\/li>\n\n\n\n
      • Auto stocks<\/strong> (Hero\u00a0MotoCorp, Tata\u00a0Motors, Mahindra\u00a0&\u00a0Mahindra) are reacting to January sales numbers; strong PV sales support the sector.<\/li>\n\n\n\n
      • Oil & gas stocks:<\/strong> BPCL trades ex\u2011dividend; energy stocks may respond to crude\u2011price volatility.<\/li>\n\n\n\n
      • Defence & aerospace:<\/strong> Bharat\u00a0Dynamics and Hindustan Aeronautics could move on order inflows and Budget allocations.<\/li>\n\n\n\n
      • Consumption & FMCG:<\/strong> ITC, Godrej\u00a0Consumer and Hindustan\u00a0Unilever may see buying interest as there was no tax hike on cigarettes and consumer staples.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
      • Company\u2011specific news:<\/strong> Quess\u00a0Corp faces a \u20b9159.9\u00a0cr tax demand; Shriram\u00a0Finance received a tax notice of \u20b996\u00a0lakh. PG\u00a0Electroplast and Latent\u00a0View Analytics announce results. Indus\u00a0Towers reports earnings post\u2011market; investors will monitor tenancy additions and cash\u2011flow trends.<\/li>\n<\/ul>\n\n\n\n

        Technical outlook and tomorrow\u2019s tone (3 February 2026)<\/h2>\n\n\n\n
          \n
        • Support and resistance levels:<\/strong> Technical analysts note that the Nifty staged a bullish reversal on daily charts after testing the 24,675\u201324,800<\/strong> support zone. Immediate supports for the next session lie around 24,900<\/strong> and 24,675<\/strong>. On the upside, resistance is expected near 25,150\u201325,250<\/strong>, with a further hurdle at 25,350<\/strong> (close to the 200\u2011day simple moving average). For the Sensex<\/strong>, support is around 81,200\u201380,400<\/strong>, while resistance sits near 82\u202f200\u201382\u202f500<\/strong>. Bank\u00a0Nifty has support at 57,825\u201358,125<\/strong> and resistance near 58,500\u201358,800<\/strong>.<\/li>\n\n\n\n
        • Momentum and tone:<\/strong> Although Friday\u2019s bounce was impressive, the broader trend remains cautious because the indices are still below their 200\u2011day 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<\/strong>, the market could attempt a further pull\u2011back towards 25,250\u201325,350<\/strong>. Failure to hold 24,900<\/strong> could invite renewed selling. Volatility is expected to remain elevated due to mixed global cues and ongoing earnings announcements. Overall, the tone for 3\u00a0February<\/strong> is cautiously optimistic with a range\u2011bound bias<\/strong>, and stock\u2011specific moves linked to earnings and Budget themes will likely dominate.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

          Market snapshot Index Closing level Pts change % change Nifty 50 25,088.40 +262.95 +1.06 % Sensex 81,666.46 +943.52 +1.17 % Bank Nifty 58,619.00 +201.80 +0.35 % Overview. After a volatile start, Indian benchmarks recovered sharply from the previous session\u2019s Budget\u2011day sell\u2011off. The Nifty\u00a050 climbed more than 260 points to finish above 25,000, while the Sensex rallied nearly 944 points. Buying […]<\/p>\n","protected":false},"author":3,"featured_media":8209,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[512],"tags":[],"class_list":["post-10164","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-updates"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/10164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/comments?post=10164"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/10164\/revisions"}],"predecessor-version":[{"id":10165,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/10164\/revisions\/10165"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media\/8209"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=10164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/categories?post=10164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/tags?post=10164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}