Stock Market Today February 02: The Indian stock market witnessed turmoil after the budget presentation. Following an initial decline due to selling pressure stemming from the increase in STT (Securities Transaction Tax) in the Union Budget, the domestic stock market recovered in early trading on Monday, moving into positive territory. The Nifty 50 index opened 28.95 points or 0.12 percent lower at 24,796.50, while the BSE Sensex opened 167.26 points or 0.21 percent lower at 80,555.68. However, the indices quickly recouped their losses in early trading, with the Nifty gaining 0.3 percent and Sensex surging by 372 points.
Stock Market Today February 02
Despite negative global cues, Indian stock markets saw gains in early trading on Monday, recovering some of the losses incurred on Budget Day. However, the broader market indices declined, with the Nifty Midcap 100 falling by 0.50 percent and the Nifty Smallcap 100 dropping by 0.85 percent. All sectoral indices, except for metals, real estate, and oil and gas, were trading in the red. Nifty Consumer Durables and IT were among the major losers, declining by 1 percent and 0.61 percent, respectively.
Budget 2026 Stock Market Reaction
Analysts say the stock market decline on Budget Day was an immediate reaction to the sharp increase in Securities Transaction Tax (STT) on Futures and Options (F&O) trades. The aim was not to increase revenue, but to discourage retail traders from engaging in complex F&O trading, where 92 percent of traders were incurring losses. A significant market recovery may take some time.
Asian Market Today
Markets in the Asia-Pacific region saw sharp declines in morning trading as investors analysed private data on Chinese factory activity in January. In Asian markets, China’s Shanghai Composite index fell 1.32 percent and the Shenzhen Component index dropped 1.41 percent, while Japan’s Nikkei 225 index declined 0.52 percent and Hong Kong’s Hang Seng index fell 2.15 percent. South Korea’s KOSPI index plunged 4 percent.
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