{"id":10182,"date":"2026-02-03T12:33:01","date_gmt":"2026-02-03T12:33:01","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?p=10182"},"modified":"2026-02-03T12:33:02","modified_gmt":"2026-02-03T12:33:02","slug":"india-market-outlook-3-feb-2026","status":"publish","type":"post","link":"https:\/\/lemonn.co.in\/blog\/market-updates\/india-market-outlook-3-feb-2026\/","title":{"rendered":"India Market Outlook – 3\u00a0Feb\u00a02026"},"content":{"rendered":"
\"nifty<\/figure>\n\n\n

Market overview<\/h2>\n\n\n\n

Indian equities delivered a blockbuster rally on 3\u00a0February\u00a02026 as investors cheered confirmation of a trade pact between India and the United States. The agreement reduces reciprocal tariffs on Indian exports to 18\u00a0% from 50\u00a0%, removes a 25\u00a0% duty linked to Indian purchases of Russian crude and commits India to purchase US energy. This clarity removed a major overhang from the Union Budget sell\u2011off, encouraging foreign portfolio investors and domestic institutions to deploy capital. Benchmark indices surged around 2.5\u00a0%, driven by heavy buying in large\u2011caps and export\u2011linked sectors such as textiles, leather and speciality chemicals. Global risk appetite also improved after Asian and US markets rebounded from a metals\u2011led sell\u2011off, further boosting sentiment. The rally lifted the market capitalisation of BSE\u2011listed companies by roughly \u20b912\u00a0lakh\u00a0crore and pushed the rupee up more than a rupee to 90.30 per US\u00a0dollar.<\/p>\n\n\n\n

Top indices<\/h2>\n\n\n\n
Index<\/th>Closing level<\/th>Change (pts)<\/th>% change<\/th>Notes<\/th><\/tr><\/thead>
Nifty 50<\/strong><\/td>25,713.30<\/td>+624.90<\/td>+2.49 %<\/td>Close above the psychological 25,700 mark; range\u2011bound consolidation with positive bias.<\/td><\/tr>
BSE Sensex<\/strong><\/td>83,700.75<\/td>+2\u202f034.29<\/td>+2.49 %<\/td>Surged over 2,000 pts on trade deal euphoria.<\/td><\/tr>
Rupee (\u20b9\/$)<\/strong><\/td>\u20b990.30<\/td>+1.19<\/td>+1.31 %<\/td>Appreciated on strong capital inflows and improving trade outlook.<\/td><\/tr>
Gold (MCX futures)<\/strong><\/td>\u20b91,46,000\/10\u00a0g<\/td>+~3 %<\/td><\/td>Gold and silver rebounded sharply after recent sell\u2011off, reflecting safe\u2011haven demand and currency moves.<\/td><\/tr>
India VIX<\/strong><\/td>13.5 (approx.)<\/td>\u2014<\/td>\u2013<\/td>Volatility eased but remained elevated as traders digested the Budget and trade deal.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Sectoral performance<\/h2>\n\n\n\n

The day saw a wide divergence between outperforming sectors linked to exports and sectors hurt by the trade deal. Average percentage changes for broader sector indices are summarised below.<\/p>\n\n\n\n

Top performing sectors<\/strong><\/th>Avg. % change<\/th>Drivers<\/th><\/tr><\/thead>
Printing & Stationery<\/strong><\/td>+7.28 %<\/strong><\/td>Beneficiaries of tariff cuts and government education schemes.<\/td><\/tr>
Cables<\/strong><\/td>+4.48 %<\/strong><\/td>Infra push and order wins.<\/td><\/tr>
Castings\/Forgings\/Fasteners<\/strong><\/td>+4.12 %<\/strong><\/td>Anticipation of higher export orders and defence capex.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Top losing sectors<\/strong><\/th>Avg. % change<\/th>Reasons<\/th><\/tr><\/thead>
Energy<\/strong><\/td>\u201317.11 %<\/strong><\/td>Profit taking in oil & gas stocks after surge and concerns over lower crude tariffs.<\/td><\/tr>
Commercial services<\/strong><\/td>\u20139.16 %<\/strong><\/td>Weak earnings visibility.<\/td><\/tr>
Healthcare services<\/strong><\/td>\u20135.74 %<\/strong><\/td>Rotation away from defensives.<\/td><\/tr>
Realty<\/strong><\/td>\u20135.07 %<\/strong><\/td>Rising bond yields and profit booking.<\/td><\/tr>
Logistics & Cargo<\/strong><\/td>\u20134.58 %<\/strong><\/td>High base and worries about margin pressure.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Key statistics<\/h2>\n\n\n\n
    \n
  • Market breadth:<\/strong> Out of ~4,675 securities traded on the BSE, 3,579 advanced<\/strong> while 1,096 declined<\/strong>, implying that ~76\u00a0% of stocks closed in the green.<\/li>\n\n\n\n
  • Turnover and capitalisation:<\/strong> Market capitalisation of all BSE\u2011listed firms rose by more than \u20b912\u00a0lakh\u00a0crore<\/strong> to about \u20b94.67\u00a0trillion<\/strong>. Cash market turnover surged amid heavy institutional participation.<\/li>\n\n\n\n
  • Institutional flows:<\/strong> Provisional data showed foreign portfolio investors (FPIs)<\/strong> were net sellers of around \u20b91,860\u00a0crore<\/strong>, while domestic institutional investors (DIIs)<\/strong> bought nearly \u20b91,760\u00a0crore<\/strong>. Despite FPI selling, the rally indicates heavy short covering and domestic buying.<\/li>\n\n\n\n
  • Currency & commodities:<\/strong> The rupee<\/strong> strengthened to \u20b990.30<\/strong> per US\u00a0dollar on expectations of improved current\u2011account dynamics. Gold<\/strong> and silver<\/strong> prices rebounded more than 3\u00a0% after their steepest two\u2011day fall in decades, as traders covered short positions.<\/li>\n<\/ul>\n\n\n\n

    Top gainers & losers<\/h2>\n\n\n\n

    Nifty 50 constituents<\/h2>\n\n\n\n
    Top gainers<\/strong> (closing price)<\/th>% gain<\/strong><\/th>Rationale<\/th><\/tr><\/thead>
    Adani Ports & SEZ<\/strong><\/td>+7.05 %<\/td>Strong January cargo volumes and optimism about export tariffs.<\/td><\/tr>
    Bajaj Finance<\/strong><\/td>+6.09 %<\/td>Pre\u2011result optimism on loan growth and margin resilience.<\/td><\/tr>
    Eternal Ltd<\/strong> (Eicher Motors)<\/td>+5.39 %<\/td>Rally in auto stocks; expectation of healthy two\u2011wheeler sales.<\/td><\/tr>
    Bajaj Finserv<\/strong><\/td>+4.56 %<\/td>Benefitted from rally in financials and expectation of strong earnings.<\/td><\/tr>
    InterGlobe Aviation<\/strong><\/td>+4.14 %<\/td>Lower jet\u2011fuel cost outlook and improved travel demand; also appears in broader market top gainers.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
    Top losers<\/strong> (closing price)<\/th>% loss<\/strong><\/th>Remarks<\/th><\/tr><\/thead>
    Bharat Electronics<\/strong><\/td>\u20131.37 %<\/td>Mild profit\u2011booking after recent run\u2011up; defence stocks lagged exporters.<\/td><\/tr>
    NTPC<\/strong><\/td>\u20131.36 %<\/td>Energy sector under pressure; concerns over lower tariffs and profit\u2011taking.<\/td><\/tr>
    Power Grid Corp<\/strong><\/td>\u20131.30 %<\/td>Sector rotation away from utilities.<\/td><\/tr>
    UltraTech Cement<\/strong><\/td>\u20131.18 %<\/td>Cement stocks cooled after budget\u2011day spike; valuations remain high.<\/td><\/tr>
    Hindustan Unilever<\/strong><\/td>\u20130.58 %<\/td>Consumer staples lagged in risk\u2011on rally.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    Broader market highlights<\/h2>\n\n\n\n

    Other notable gainers included Maruti Suzuki<\/strong> (+2.77 %), InterGlobe Aviation<\/strong> (+5.53 %), Eicher Motors<\/strong> (+3.29 %), Adani Enterprises<\/strong> (+10.38 %) and Apollo Hospitals<\/strong> (+2.24 %). The standout decliner was Tech Mahindra<\/strong> (\u20130.44 %).<\/p>\n\n\n\n

    What moved the market<\/h2>\n\n\n\n
      \n
    1. India\u2013US trade deal:<\/strong> The major catalyst was a surprise announcement that India and the United States concluded a comprehensive trade pact. Washington agreed to cut reciprocal tariffs on Indian goods to 18\u00a0% from 50\u00a0% and dropped the 25\u00a0% duty on Indian purchases of Russian oil, while India committed to import more US energy and relax some market\u2011access barriers. The agreement removes a key overhang that had weighed on markets after the Union Budget and improves the outlook for exporters.<\/li>\n\n\n\n
    2. Short covering and heavy domestic buying:<\/strong> Foreign portfolio investors remain net sellers, but the magnitude of the rally suggests substantial short covering in index futures and strong buying by domestic institutions. Index heavyweights in banking, finance and autos led the gains.<\/li>\n\n\n\n
    3. Strong global cues:<\/strong> Asian equities surged after two days of steep losses; South Korea\u2019s benchmark jumped nearly 7\u00a0% and Japan\u2019s Nikkei rose almost 4\u00a0% as investors bought technology and AI\u2011linked stocks. US indices also bounced overnight on better\u2011than\u2011expected manufacturing data. The improved global tone and a weaker US dollar supported risk assets.<\/li>\n\n\n\n
    4. Commodity reversal:<\/strong> Gold and silver recovered sharply after their largest two\u2011day drop since 2008, which eased fears of a broad market contagion. Lower metals volatility and a stronger rupee reduced concerns about imported inflation.<\/li>\n\n\n\n
    5. Sector rotation:<\/strong> Export\u2011oriented sectors such as textiles, leather, speciality chemicals and capital goods rallied on expectations of tariff reductions. Conversely, energy stocks fell sharply as traders anticipated reduced margins from lower crude tariffs.<\/li>\n<\/ol>\n\n\n\n

      Global cues<\/h2>\n\n\n\n
        \n
      • GIFT\u00a0Nifty<\/strong> futures traded about 4.4\u00a0% higher early in the day, signalling a massive gap\u2011up opening for domestic indices.<\/li>\n\n\n\n
      • Asia:<\/strong> The MSCI Asia Pacific Index climbed over 1.5\u00a0%; South Korea\u2019s Kospi rallied nearly 7\u00a0%, and Japan\u2019s Nikkei 225 gained about 3.9\u00a0%. The rebound followed a calmer session in metals markets and optimism over the India\u2011US deal.<\/li>\n\n\n\n
      • US:<\/strong> Wall Street ended higher overnight. The S&P\u00a0500 gained roughly 0.5\u00a0%, and the Nasdaq\u00a0100 rose 0.7\u00a0% as strong manufacturing data offset uncertainty around Federal Reserve leadership appointments.<\/li>\n\n\n\n
      • Currencies\/commodities:<\/strong> The US\u00a0dollar softened against major Asian currencies. Gold and silver prices rebounded strongly, while crude oil remained range\u2011bound as traders assessed the impact of the trade pact on energy flows.<\/li>\n<\/ul>\n\n\n\n

        Stocks to watch (earnings & corporate actions)<\/h2>\n\n\n\n

        Scheduled results and events<\/h2>\n\n\n\n
        Company\/Theme<\/th>Focus\/Reason<\/th><\/tr><\/thead>
        Bajaj Finance<\/strong><\/td>Q3 results due; investors will watch asset quality, loan growth and margin guidance.<\/td><\/tr>
        Aditya Birla Capital<\/strong><\/td>Results due; trends in lending, insurance and profitability in focus.<\/td><\/tr>
        Mankind Pharma<\/strong><\/td>Post\u2011market results; watch for volume growth and margin outlook.<\/td><\/tr>
        Pidilite Industries<\/strong><\/td>Earnings expected; commentary on demand trends and margins important.<\/td><\/tr>
        Solar Industries<\/strong><\/td>Results scheduled; defence order inflows and margins under watch.<\/td><\/tr>
        Varun Beverages<\/strong><\/td>Results; beverage volumes and seasonal outlook key.<\/td><\/tr>
        NMDC<\/strong><\/td>Results after market; iron\u2011ore volumes and pricing trends to be tracked.<\/td><\/tr>
        V2 Retail<\/strong><\/td>Board meets to consider stock split; may spur speculative interest.<\/td><\/tr>
        Studds Accessories<\/strong><\/td>End of 3 % anchor lock\u2011in; supply from early investors may weigh on stock.<\/td><\/tr>
        Akums Drugs<\/strong><\/td>End of 20 % anchor lock\u2011in; supply overhang.<\/td><\/tr>
        PB Fintech<\/strong><\/td>Reported strong Q3 results and board approved a fund raise via QIP; could see continued momentum.<\/td><\/tr>
        PG Electroplast<\/strong><\/td>Posted robust year\u2011on\u2011year results and guided for expansion; could attract buying.<\/td><\/tr>
        Indus Towers<\/strong><\/td>Reported weak results with declining EBITDA and margins; may face selling.<\/td><\/tr>
        Unichem Laboratories<\/strong><\/td>USFDA issued observations at Kolhapur API facility; regulatory risk.<\/td><\/tr>
        CreditAccess Grameen<\/strong><\/td>Clarified that promoter stake sale reports were speculative; stock could stabilise.<\/td><\/tr>
        Brigade Hotel Ventures<\/strong><\/td>Signed an MoU with Tamil Nadu government for \u20b91,100 crore investment to build three hotels in Chennai, adding over 500 rooms.<\/td><\/tr>
        Infosys<\/strong><\/td>Expanded multi\u2011year digital partnership with Madison Square Garden group; strengthens sports and media presence.<\/td><\/tr>
        Coal India<\/strong><\/td>Upgraded pay scales for mid\u2011level officers effective retroactively; financial impact estimated at \u20b93,400 crore.<\/td><\/tr>
        IRB Infrastructure<\/strong><\/td>Transferred Gandeva\u2013Ena HAM project to its InvIT for \u20b9513 crore, reducing debt by about \u20b9700 crore.<\/td><\/tr>
        Tata Power<\/strong><\/td>Commissioned a 198 MW wind project in Tamil Nadu to supply power to Tata Steel; record execution timeline.<\/td><\/tr>
        Aditya Birla Lifestyle<\/strong><\/td>Reported double\u2011digit revenue and EBITDA growth; approved issuance of NCDs up to \u20b9500 crore.<\/td><\/tr>
        Olectra Greentech<\/strong><\/td>Posted mixed results; revenue and EBITDA grew but net profit remained flat.<\/td><\/tr>
        Corona Remedies<\/strong><\/td>Reported healthy revenue and EBITDA growth but a decline in net profit.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

        Other notable corporate news<\/h2>\n\n\n\n
          \n
        • Adani\u00a0Ports &\u00a0SEZ:<\/strong> January cargo volumes were 44.8\u00a0MMT, up 12\u00a0% YoY, with year\u2011to\u2011date volumes up 18\u00a0%. The strong throughput drove the stock\u2019s rally.<\/li>\n\n\n\n
        • Maruti\u00a0Suzuki:<\/strong> January production totalled 2,26,000 units (up from 2,06,000 a year earlier), with passenger vehicle output rising while light commercial vehicle output fell.<\/li>\n\n\n\n
        • Power\u00a0Grid:<\/strong> A subsidiary commissioned a 4.5\u00a0GW transmission scheme.<\/li>\n\n\n\n
        • NTPC\u00a0Green:<\/strong> Signed an MoU with Assago\u00a0Industries to supply green ammonia, CO\u2082, renewable power and utilities.<\/li>\n\n\n\n
        • Tata\u00a0Chemicals:<\/strong> Announced plans to invest \u20b9515\u00a0crore in an integrated vacuum salt and soda ash plant.<\/li>\n\n\n\n
        • Sundaram\u00a0Finance:<\/strong> Increased its borrowing limit to \u20b916,000\u00a0crore.<\/li>\n\n\n\n
        • BLS\u00a0International:<\/strong> Acquired a 95\u00a0% stake in Bahrain\u2011based MVA\u00a0International, expanding its visa and passport processing business.<\/li>\n\n\n\n
        • Zen\u00a0Technologies:<\/strong> Appointed a new CFO and re\u2011appointed its chairman & MD for a further three years.<\/li>\n\n\n\n
        • ACME\u00a0Solar:<\/strong> Received commissioning certificates for part of a 100\u00a0MW wind project.<\/li>\n\n\n\n
        • Tata\u00a0Steel:<\/strong> Injected \u20b95,754\u00a0crore into its foreign subsidiary T\u00a0Steel\u00a0Holdings.<\/li>\n\n\n\n
        • Jash\u00a0Industries:<\/strong> Received NCLT approval for merging Shivpad\u00a0Engineers with Jash\u00a0Engineering.<\/li>\n<\/ul>\n\n\n\n

          Technical levels & outlook for 4 Feb 2026<\/h2>\n\n\n\n

          Nifty 50<\/h2>\n\n\n\n
          Zone<\/th>Level range<\/th>Interpretation<\/th><\/tr><\/thead>
          Major support<\/strong><\/td>24,850\u00a0\u2013\u00a024,900<\/td>Post\u2011budget base; a break below could signal deeper correction.<\/td><\/tr>
          Immediate support<\/strong><\/td>25,000\u00a0\u2013\u00a025,050<\/td>Psychological holding zone; bulls likely to defend dips here.<\/td><\/tr>
          Neutral range<\/strong><\/td>25,050\u00a0\u2013\u00a025,200<\/td>Consolidation band; likely to see choppy trade.<\/td><\/tr>
          Immediate resistance<\/strong><\/td>25,250\u00a0\u2013\u00a025,350<\/td>Supply zone; profit\u2011booking expected on approach.<\/td><\/tr>
          Upper resistance<\/strong><\/td>25,500\u00a0+<\/strong><\/td>Upside extension if follow\u2011through buying emerges.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

          Bank Nifty<\/h2>\n\n\n\n
          Zone<\/th>Level range<\/th>Interpretation<\/th><\/tr><\/thead>
          Major support<\/strong><\/td>58,200\u00a0\u2013\u00a058,400<\/td>Structural base; sustained breach may trigger weakness.<\/td><\/tr>
          Immediate support<\/strong><\/td>58,500\u00a0\u2013\u00a058,650<\/td>Short\u2011term cushion.<\/td><\/tr>
          Neutral range<\/strong><\/td>58,650\u00a0\u2013\u00a058,900<\/td>Sideways consolidation area.<\/td><\/tr>
          Resistance<\/strong><\/td>59,000\u00a0\u2013\u00a059,300<\/strong><\/td>Supply zone; breakout could open room toward new highs.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

          Expected market tone for Wednesday<\/h2>\n\n\n\n
            \n
          • Bias:<\/strong> After Tuesday\u2019s explosive rally, the market is likely to consolidate. A positive bias remains as long as Nifty holds above the 25,000\u201325,050<\/strong> support zone; dips toward this area may attract buying.<\/li>\n\n\n\n
          • Volatility:<\/strong> Volatility should cool gradually but remain elevated given ongoing Budget debates and earnings announcements. Traders may adopt a range\u2011bound strategy between 25,050 and 25,350 until fresh triggers emerge.<\/li>\n\n\n\n
          • Focus areas:<\/strong> Watch capital goods, textiles, speciality chemicals and hospitality stocks for continued strength from the trade\u2011deal tailwinds. Energy, utilities and select FMCG names may underperform as investors rotate into high\u2011beta plays. Earnings releases and management commentary will drive stock\u2011specific moves.<\/li>\n\n\n\n
          • Macro cues:<\/strong> Keep an eye on US labour\u2011market data and comments from Federal Reserve officials for clues on global risk sentiment. Any follow\u2011through announcement on tariff implementation timelines or potential retaliation from other trading partners could also sway markets.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

            Market overview Indian equities delivered a blockbuster rally on 3\u00a0February\u00a02026 as investors cheered confirmation of a trade pact between India and the United States. The agreement reduces reciprocal tariffs on Indian exports to 18\u00a0% from 50\u00a0%, removes a 25\u00a0% duty linked to Indian purchases of Russian crude and commits India to purchase US energy. This […]<\/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-10182","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\/10182","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=10182"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/10182\/revisions"}],"predecessor-version":[{"id":10184,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/10182\/revisions\/10184"}],"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=10182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/categories?post=10182"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/tags?post=10182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}