Home / Business and Economy / Indian Markets Rebound Sharply After Budget Woes
Indian Markets Rebound Sharply After Budget Woes
2 Feb
Summary
- Indian stock markets staged a significant recovery on Monday.
- Power Grid and Tata Motors were top gainers in the rally.
- Rupee strengthened against the US dollar, closing at 91.51.
Indian benchmark indices, the Sensex and Nifty, experienced a substantial recovery on Monday, February 2, 2026. The Sensex surged by 943.52 points to 81,666.46, while the Nifty gained 262.95 points to settle at 25,088.40, successfully recouping losses from the previous Budget day. This rally was predominantly driven by strong performances in Power Grid, Tata Motors, and Adani Ports.
Vinod Nair, Head of Research at Geojit Investments, noted that the market's recovery was fueled by policy continuity and a focus on growth and fiscal prudence outlined in the Budget. All sectoral indices, except Nifty IT, ended in the green, with Capital Markets, Auto, and Oil & Gas sectors showing notable gains. Broader markets, including the Nifty Midcap 100 and Smallcap 100, also mirrored the positive trend.
The Indian rupee appreciated sharply by 47 paise to 91.51 against the US dollar, supported by easing commodity prices and robust foreign exchange reserves. Brent crude oil prices fell over 4% to $66.45 per barrel, easing geopolitical concerns. Analysts expect market volatility to persist as investors await Q3 earnings and the RBI's monetary policy decision.
