Equities snap two-session losing streak on budget assessment, Nifty retakes 25,050

Equity benchmarks staged a sharp comeback on Monday, breaking a two-session slide as investors weighed the union budget's implications for market sentiment and capital flows. Buying momentum returned despite proposals to raise securities transaction taxes on derivatives and the absence of fresh steps to lure foreign capital. The Nifty reclaimed territory above the 25,050 mark, powered by firm gains in auto, energy and metal stocks.

The S&P BSE Sensex zoomed 943.52 points or 1.17% to 81,666.46. The Nifty 50 index jumped 262.95 points or 1.06% to 25,088.40. In the past two consecutive trading sessions, the Sensex declined 0.73% while the Nifty fell 0.91%.

 

Reliance Industries (up 3.28%), Larsen & Toubro (up 2.86%) and ICICI Bank (up 1.31%) boosted the indices today.

In the broader market, the S&P BSE 150 Mid-Cap index rose 0.86% and the S&P BSE 250 Small-Cap index added 0.28%.

The market breadth was negative. On the BSE, 2,039 shares rose and 2,220 shares fell. A total of 169 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tanked 8.14% to 13.87.

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.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 1.15% to 6.772 compared with previous session close of 6.695.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 91.5200 compared with its close of 90.9350 during the previous trading session.

MCX Gold futures for 2 April 2026 settlement declined 1.79% to Rs 145,398.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.08% to 97.07.

The United States 10-year bond yield fell 0.59% to 4.219.

In the commodities market, Brent crude for April 2026 settlement dropped $3.01 or 4.34% to $66.31 a barrel.

Brent crude prices slid after U.S. President Donald Trump said over the weekend that Iran was seriously talking with Washington, signaling a possible easing of tensions with the OPEC member. The comments helped temper fears of a potential military strike that had earlier pushed oil prices to multi-month highs.

Global Markets:

The US Dow Jones index futures are currently down by 133 points, signaling a weak opening for US stocks today.

European equities advanced on Monday at the start of a data-heavy week featuring major corporate earnings, central bank meetings, and key macroeconomic releases.

Data released earlier showed German retail sales rose 0.1% month-on-month in December, reversing a 0.5% decline in the previous month.

Asian equities ended lower as investors assessed fresh private data on Chinas factory activity for January, while gold extended losses following last weeks decline.

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.

Stocks in Spotlight:

The Nifty Auto index rose 2.13% to close at 26,749.15, recovering from a 2.09% decline in the previous session. Gains were led by Tata Motors Passenger Vehicles, which jumped 5.61%, followed by Bharat Forge up 4.65% and Ashok Leyland rising 3.12%. Uno Minda gained 3.05%, while Mahindra & Mahindra advanced 2.71% and Hero MotoCorp added 2.43%. Samvardhana Motherson International rose 2.10% and Sona BLW Precision Forgings climbed 2.03%. TVS Motor Company gained 1.70%, Exide Industries rose 1.69%, Eicher Motors advanced 1.34%, Maruti Suzuki India added 1.26%, and Bosch edged up 0.97%.

Maruti Suzuki India rose after the company reported total sales of 236,963 units in January 2026, registering an 11.6% YoY growth compared with 212,251 units sold in January 2025.

Atul Auto soared 7.16% after the company reported a 30.09% rise in total sales to 3,606 units in January 2026 as against 2,772 units sold in January 2025.

Shares of cigarette and tobacco manufacturers declined after cigarette prices rose sharply from February 1 following the introduction of additional excise duty. Against this backdrop, VST Industries fell 1.72%, ITC declined 1.68%, while Godfrey Phillips India slid 2.59%, as investors reacted to higher prices triggered by the revised tax structure.

From February 2026, cigarettes and tobacco products will attract additional excise duty and cess over and above the highest 40% GST slab, replacing the earlier regime of 28% GST plus compensation cess. The Central Excise Act has also been amended to impose a per-stick excise duty on cigarettes, with rates linked to cigarette length.

Bharat Electronics rose 3.33% to Rs 439.10 after a foreign brokerage raised its price target on the stock to Rs 508 from Rs 418.

Latent View Analytics added 9.16% after the companys consolidated net profit jumped 19.69% to Rs 50.14 crore on 22.02% increase in revenue from operations to Rs 278 crore in Q3 December 2025 over Q3 December 2024.

Godrej Properties rose 3.44% after the company reported sales of over Rs 2,000 crore in Phase 1 of its residential project Godrej Trilogy in Worli.

Gokaldas Exports dropped 4.61% 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. Revenue from operations shed 0.92% year-over-year (YoY) to Rs 978.65 crore during the quarter.

Bartronics India fell 1.48%. The company reported standalone net profit of Rs 2.44 crore in Q3 FY26, compared with net loss of Rs 0.32 crore in Q3 FY25. Revenue from operations stood at Rs 48.34 crore in Q3 FY26, registering the growth of 455.63%, compared with Rs 8.70 crore in Q3 FY25.

Brahmaputra Infrastructure rose 2.12% after the company announced that it has secured an order worth Rs 68.91 crore from the Water Resources Department, Assam, for riverbank protection works in the state.

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