The Indian stock market today witnessed a sharp recovery as benchmark indices staged a strong rebound following the Budget-induced volatility. After a significant sell-off on Sunday, investors returned to value buying in blue-chip stocks across the energy, automobile, and banking sectors. Both the BSE Sensex and NSE Nifty 50 ended the session with gains exceeding 1 per cent.
Market Rebounds from Budget Day Slump
Dalal Street breathed a sigh of relief on Monday as the heavy selling seen during the Union Budget 2026-27 session paused. While the previous session was marred by concerns over the hike in Securities Transaction Tax (STT) and increased government borrowing, the market shifted its focus back to fundamental growth.
The 30-share BSE Sensex jumped 943.52 points, or 1.17 per cent, to settle at 81,666.46. During the day, the index showed immense strength, hitting an intraday high of 81,732.25. Similarly, the NSE Nifty 50 climbed 262.95 points to close at 25,088.40, successfully reclaiming the psychological 25,000 mark.
Sectoral Performance and Key Drivers
The recovery was largely driven by heavyweights in the oil and gas and auto sectors. Analysts noted that while the STT hike on derivatives caused a knee-jerk reaction, the Budget’s long-term emphasis on fiscal prudence and infrastructure spending provided a safety net for investor sentiment.
Another major tailwind for the stock market today was the cooling of global crude oil prices. As geopolitical tensions between the US and Iran showed signs of de-escalation, the reduction in energy costs boosted the outlook for Indian corporate earnings, particularly for fuel-dependent industries.
Nifty 50 Top Gainers and Losers
The Nifty 50 pack was dominated by Power Grid, which surged 7.75%. Tata Motors and Adani Ports also featured prominently among the top performers.
Top Gainers on Nifty:
- Power Grid: 7.75%
- Tata Motors: 5.49%
- Adani Ports SEZ: 4.30%
- Tata Consumer: 3.71%
- BEL: 3.52%
Top Losers on Nifty:
- Shriram Finance: -3.56%
- Axis Bank: -2.16%
- Max Healthcare: -1.91%
- Infosys: -1.52%
BSE Sensex Top Performers
On the BSE, the story remained consistent with Power Grid leading the charge. Large-cap names like Reliance Industries (RIL) and Larsen & Toubro (L&T) provided the necessary muscle to keep the index firmly in the green.
Top Gainers on Sensex:
- Power Grid: 7.58%
- Adani Ports: 4.33%
- BEL: 3.24%
- Reliance Industries (RIL): 3.23%
- Mahindra & Mahindra: 2.96%
FII Activity and Expert Outlook
Despite the domestic recovery, Foreign Institutional Investors (FIIs) remained cautious. According to exchange data, FIIs were net sellers, offloading equities worth Rs 588.34 crore. In contrast, domestic buying helped stabilize the floor for the indices.
Experts believe that while volatility may persist in the short term due to the new tax structures, the policy continuity in the Budget is a positive sign. The market is now looking toward the upcoming quarterly earnings and global cues for further direction.
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