Barometers pare gains; PSU bank shares decline for 2nd decline

The key equity benchmarks reversed all gains and traded with small cuts in the early afternoon trade, extending their Budget Day losses. Major indices, which had opened modestly higher on Monday, turned lower as investors assessed the federal budget, which fell short of expectations on measures to boost foreign investment and ease trading costs.

The Nifty traded below 25,750 mark. PSU Bank shares declined for previous two consecutive trading sessions.

At 11:28 ST, the S&P BSE Sensex, fell 114.20 points or 0.14% to 80,606.51. The Nifty 50 index fell 102.30 points or 0.41% to 24,723.15.

The broader market underperformed the frontline indices. The S&P BSE 150 MidCap Index fell 1.23% and the S&P BSE 250 SmallCap Index declined 1.55%.

The market breadth was weak. On the BSE, 1,173 shares rose and 2,687 shares fell. A total of 192 shares were unchanged.

Economy:

Indias manufacturing activity recovered in January after losing momentum in December, though business confidence weakened. The HSBC India Manufacturing Purchasing Managers Index (PMI) rose to 55.4 in January from a two-year low of 55.0 in December, remaining well above the 50-mark that separates expansion from contraction.

Politics:

Sunetra Pawar was sworn in Maharashtra's first woman Deputy Chief Minister on 31 January 2026, days after her husband Ajit Pawar's fatal plane crash on January 28 near Baramati Airport.

A former Rajya Sabha MP and social activist from Baramati, Sunetra Pawar took oath at Lok Bhavan in Mumbai and said she would carry forward Ajit Pawars legacy of public service, focusing on social equality, women and youth empowerment, rural upliftment, and administrative reform.

She will work alongside Chief Minister Devendra Fadnavis and Deputy Chief Minister Eknath Shinde, strengthening the Mahayuti alliance.

Sunetra Pawar is expected to handle portfolios such as Excise, Sports, and Youth Welfare and Minorities Development, with the Finance portfolio temporarily retained by the chief minister.

Buzzing Index:

The Nifty PSU Bank index fell 2.29% to 8,322.35. The index declined 7.72% in the previous two consecutive trading session.

Indian Bank (down 3.3%), Bank of Baroda (down 2.86%), UCO Bank (down 2.67%), Punjab & Sind Bank (down 2.43%) and State Bank of India (down 2.38%), Punjab National Bank (down 2.28%), Central Bank of India (down 1.74%), Indian Overseas Bank (down 1.51%), Union Bank of India (down 1.42%) and Bank of India (down 0.96%) fell.

Stocks in Spotlight:

Studds Accessories declined 2.62%. The company reported a 26.3% jump in consolidated net profit to Rs 20.7 crore on 9.4% rise in revenue from operations to Rs 163 crore in Q3 FY265 over Q3 FY25.

Gokaldas Exports dropped 5.79% after the company reported 70.97% fall in consolidated net profit to Rs 14.61 crore in Q3 FY26 from Rs 50.34 crore in Q3 FY25.

Lupin declined 2.37%. The company announced a strategic collaboration with TB Alliance, to advance the clinical development and commercialization of Telacebec for the treatment of mycobacterial diseases, such as tuberculosis (TB), leprosy, and Buruli ulcer.

Global Markets:

The US Dow Jones index futures is currently down by 389 points, signaling a weak opening for US stocks today.

Asian equities slipped on Monday as investors digested fresh private data on Chinas factory activity for January, while gold continued to slide after last weeks drop.

Chinas manufacturing momentum picked up pace in January, a private survey released on Monday showed, with producers ramping up output and shipping goods ahead of the long Lunar New Year break.

The RatingDog China General Manufacturing PMI, compiled by S&P Global, edged up to 50.3 in January from 50.1 in December. Since readings above 50 signal expansion and those below indicate contraction, the latest print points to a modest improvement. It was also the strongest showing since October, when the index stood at 50.6.

Over in the US, stocks ended lower on Friday as technology shares stayed under pressure, even as markets broadly welcomed President Donald Trumps choice of Kevin Warsh as the next Federal Reserve chair. Despite the late-month wobble and choppy trading through January, the S&P 500 still managed to close the month in positive territory. On Friday, the index slipped 0.43% for its third straight decline, the Dow Jones Industrial Average fell 0.36%, and the Nasdaq Composite lagged with a sharper 0.94% drop.

Warshs nomination helped calm nerves around the Feds independence, given his past experience as a central bank governor and his firm views on inflation. While he is expected to favour lower interest rates in the near term, in line with Trumps preferences, markets see him as someone likely to retain policy credibility rather than simply take cues from the White House.

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