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Sensex rose 240 points, and Nifty held 24,850 as large-cap stocks rebounded.
STT (Securities Transactions Tax) hike on futures and options caused cautious trading among retail and derivative investors.
Defence, energy, and infrastructure stocks gained, while midcap and smallcap indices stayed weak.
Indian stock market today, on February 2, 2026, is trying to find its footing after a rocky start to the week. Investors are still processing the big changes announced in the Union Budget 2026. Following a major sell-off on February 1, the market is showing signs of recovery today. Sensex is up 240 points or 0.30% at 80,963 at press time. Nifty is holding at 24,850, gaining 25 points or 0.10%. While these small gains are encouraging, the mood in Dalal Street is cautious as everyone figures out what the new rules mean for their wallets.
The biggest talking point is the government's decision to raise taxes on futures and options trading (Securities Transactions Tax or STT). This move is designed to cool down risky short-term betting. Now, investors are moving their money into steady areas like defence, energy, and infrastructure, which got a big boost in government funding. It’s a classic case of the market moving away from ‘quick wins’ and toward long-term growth.
Here’s everything you need to know about the stock market today based on Moneycontrol data.
The stock market today displayed high volatility with mixed sectoral performance. Oil & gas, energy, and infrastructure sectors gained around 1% each. Meanwhile, media, metal, PSU Bank, pharma, and consumer durables faced selling pressure. Nifty Midcap index fell 0.7%, and the Smallcap index shed 1%.
BSE Metal index rose 0.5% with NALCO shares gaining 4% and Hindalco up 0.93%. Vedanta stock also went up 2.42%. BSE FMCG index fell 0.5% for the second straight session.
Banking stocks showed mixed performance. ICICI Bank traded 0.55% higher at Rs. 1,340, while SBI faced selling pressure. Nifty PSU Bank index extended its fall for the second day with Bank of Baroda, Indian Bank, and Canara Bank among the losers.
On Nifty 50, the top gainers are led by Reliance Industries, Adani Ports, L&T, Tata Motors Passenger Vehicles, and Tata Consumer. Asian Paints also made the list.
Adani Ports rose by more than 1% today as the infrastructure and energy sectors showed strength. Reliance Industries (RIL) share price surged nearly 1%, as the oil & gas sector snapped its two-day losing streak. BSE Oil & Gas index gained 0.5% at press time, providing support to RIL shares. On the other hand, Shriram Finance, Max Healthcare, Cipla, SBI, and Trent witnessed profit booking.
Maruti Suzuki reported its highest-ever monthly sales in January 2026. The company sold 236,963 units. However, the stock traded marginally lower at Rs. 14,192, down 0.06%, as markets had already priced in strong sales numbers.
At the same time, Tata Motors Passenger Vehicles' sales were 71,066 units in January 2026, up from 48,316 units in January 2025. The increase showed strong demand; in turn, the company’s stock rose 0.73% to Rs. 347.
Glenmark Pharma stock is one of the biggest losers in the stock market today. The shares fell 4.89% to Rs. 1,844.55 in their worst single-day decline in 11 months. The stock now trades nearly 19% below its 52-week high of Rs. 2,286 reached in July 2025.
Bajaj Auto faced selling pressure despite HDFC Securities upgrading the stock to 'buy' from 'add' with a target price of Rs. 11,012. The two-wheeler major traded at Rs. 9,314, down 1.81% or Rs. 171. Trading activity remained subdued with volumes declining 76% compared to recent averages.
Apollo Pipes slipped 1.77% to Rs. 258.40 after DAM Capital downgraded the stock to 'neutral' with a target of Rs. 250. The stock saw lower volumes, dropping 88% compared to its five-day average.
Finance Minister Nirmala Sitharaman's fiscal roadmap targets a 4.3% deficit for FY27. The budget this year seemed to balance growth needs with financial discipline.
The government announced gross market borrowings of Rs. 17.2 lakh crore for FY27, a 16% jump from current year estimates. This higher borrowing pushed Indian bond yields up by 7 basis points, creating potential mark-to-market challenges for banks and NBFCs.
The Defence Budget offered positive surprises, rising 7% annually to Rs. 7.85 lakh crore and exceeding analyst expectations. Capital procurement allocations jumped 18% to Rs. 2.19 lakh crores. The news benefited defence manufacturers like Solar Industries, Bharat Electronics, and Bharat Dynamics.
For real estate and data centers, the budget offered mixed signals. Tax holidays extending until 2047 for foreign data center companies are promising. Infrastructure and manufacturing received sustained capital expenditure commitments.
JM Financial noted that power and renewable energy budget allocations align with existing policy frameworks. The focus shifts toward emerging technologies, including nuclear energy, battery manufacturing, and carbon capture,rather than traditional capacity additions.
Market analysts highlighted that while the STT increase on derivatives dampens short-term sentiment. The budget strengthens India's medium-term growth trajectory through investments in AI, semiconductors, and digital infrastructure. The 10% nominal GDP growth assumption should support 15% earnings expansion in FY27.
Also Read: Gold, Silver Crash on Budget Day, Futures Slam Into Lower Circuits
Indian rupee opened higher at 91.80 per dollar versus January 30’s close of 91.99. Gold and silver prices fell sharply from record highs after US President Donald Trump selected Kevin Warsh as the next Fed Chairman. Gold fell 1.5% on a firm dollar, while silver recovered from over three-week lows. Analysts expect gold support near $4,510 and silver around $68 this week.
Oil prices dropped nearly 3% as Trump indicated Iran was ‘seriously talking’ with Washington, signalling de-escalation. Brent crude fell 2.9% to $67.28 per barrel, while WTI crude declined 3.1% to $63.17.
Market experts believe Budget 2026 strikes a balance between growth support and fiscal discipline. The focus on AI, semiconductors, data centres, and manufacturing provides long-term structural support. While higher STT and borrowing may create near-term pressure, the 10% nominal GDP growth target should deliver 15% earnings growth in FY27, supporting markets over the medium term.
Also Read: Budget 2026 Simplifies NRI Investing, Expands Market Access and Boosts Long-Term Foreign Capital
1. Why did Sensex go up today?
The Sensex rose 240 points today as investors bought shares of big companies like Reliance Industries, Adani Ports, and L&T. The energy, infrastructure, and defence industries performed well, helping offset the selling of banking and pharmaceutical stocks. This shows that the market is cautiously optimistic.
2. Why is Nifty up today?
The Nifty increased by 25 points as people steadily bought oil & gas, infrastructure, and defence stocks. Traders are trying to stay positive about the budget plans, but they are concerned about the higher taxes on futures and options trading.
3. Which stocks are doing well today?
The stocks that are gaining today are Reliance Industries, Adani Ports, L&T, Tata Motors Passenger Vehicles, and Tata Consumer. Defence stocks such as Bharat Electronics and Bharat Dynamics are also benefiting from increased government spending, which is improving investor confidence in key industries.
4. Why are mid- and small-cap stocks falling today?
Mid- and small-cap stocks are down as investors stay away from riskier assets following the Budget 2026 announcements. Rising bond yields, investors selling to take profits, and a general sense of caution have led these stocks to underperform large-cap stocks, which are attracting most of the buying interest.
5. How is Budget 2026 affecting the stock market?
Budget 2026 has had both positive and negative effects. Defence spending is up 7%, capital procurement is up 18%, and infrastructure and manufacturing have received more money. At the same time, higher taxes on derivatives and increased market borrowing have created some immediate challenges for traders and banks.
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