Stock Markets Recover After Budget Day Slump

India’s benchmark stock indices, Sensex and Nifty, showed recovery during early trading on Monday, supported by value buying in major blue-chip companies after suffering sharp losses on the day the Union Budget was presented.

The BSE Sensex, consisting of 30 shares, increased by 302 points to reach 81,024.94 in early trade. Similarly, the NSE Nifty, which tracks 50 stocks, rose by 59.25 points to 24,884.70.

Markets rebound in early trade as blue-chip stocks gain despite Budget-related volatility and global market weakness.

Leading gainers in the Sensex pack included Adani Ports, Larsen & Toubro, Asian Paints, Bharat Electronics, Eternal, Reliance Industries, Power Grid, and HDFC Bank. On the other hand, stocks such as Trent, Titan, ITC, and Hindustan Unilever recorded losses.

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Union Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27, valued at ₹53.5 lakh crore, focusing on strengthening manufacturing, providing long-term tax benefits for global data centre investments, and supporting sectors like agriculture and tourism. Despite upcoming elections in several states, including West Bengal and Tamil Nadu, the Budget avoided populist measures and emphasized fiscal discipline along with continued investment in infrastructure to sustain economic growth amid global uncertainties.

However, the announcement of an increase in the securities transaction tax on equity derivatives negatively affected investor sentiment. During the special Budget-day trading session, major indices dropped by nearly 2 percent before partially recovering.

On Sunday, the Sensex closed at 80,722.94, declining by 1,546.84 points or 1.88 percent, while the Nifty fell by 495.20 points or 1.96 percent to close at 24,825.45.

According to exchange data, foreign institutional investors sold equities worth ₹588.34 crore on Sunday.

Across Asian markets, South Korea’s Kospi declined by more than 4 percent, while Japan’s Nikkei 225, China’s Shanghai SSE Composite, and Hong Kong’s Hang Seng indices also traded lower. Meanwhile, US markets ended Friday’s session in negative territory.

Additionally, global oil prices dropped, with Brent crude falling 4.14 percent to USD 66.45 per barrel.

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