Why did Indian equities surge after the budget on February 3, 2026?

Indian equities surged post-budget due to the budget's policy continuity, a clear emphasis on growth, and fiscal prudence, which reinforced confidence in the medium- to long-term earnings outlook.

Which sectors performed best in the Indian market on February 3, 2026?

The auto and power sectors were major contributors to the gains, while the Metal and Infrastructure sectors also exhibited robust growth.

What factors might influence the Indian market's mood in the near term?

In the near term, the market mood is expected to stay cautious due to below-estimate Q3 earnings and ongoing global tensions, despite a positive budget outlook.

Home / Business and Economy / Indian Stocks Surge Post-Budget: Auto & Power Lead Rally

Indian Stocks Surge Post-Budget: Auto & Power Lead Rally

2 Feb

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Summary

Indian equities surged post-budget, with Nifty 50 and Sensex closing significantly higher.
Auto and power sectors led the gains, while Metal and Infrastructure stocks also performed well.
Market confidence boosted by budget's policy continuity and fiscal prudence, despite F&O STT hike concerns.

Indian Stocks Surge Post-Budget: Auto & Power Lead Rally

Indian equity benchmarks staged a strong recovery in Monday's session, concluding the day with substantial gains following a volatile period influenced by the budget announcement. The Nifty 50 index rose by 263 points to close at 25,088.40, while the BSE Sensex saw a jump of 944 points, settling at 81,666.

The surge was notably driven by strong performances in the auto and power sectors. Additionally, the Metal and Infrastructure sectors also exhibited robust growth, contributing to the overall positive market sentiment. This recovery indicates a market reaction to the budget's policy continuity and a focus on fiscal prudence, which has bolstered confidence in future earnings.