Last Updated:
After opening nearly flat, the NSE Nifty rose to the day’s high, then touched the day’s low before sharply recovering to trade at the day’s high of 24,959.
The BSE Sensex surged by 582 points, or up 0.72%, at 81,305.20 and while the NSE Nifty rose by 131 points, or up 52%, to trade above 24,950 at 24,959.27 in the afternoon trade.
Why Is Share Market Rising Today? The domestic equity market on Monday surged by up to 0.7%, with the BSE Sensex surging by 582 points, or up 0.72%, at 81,305.20 in the afternoon trade and the NSE Nifty rising by 131 points, or up 0.52%, to trade above 24,950 at 24,959.27. After opening nearly flat, the NSE Nifty rose to the day’s high, then touched the day’s low before sharply recovering to trade at the day’s high of 24,959.
Among the 30 Sensex shares, 21 stocks were trading in the green. Among the top gainers were Power Grid, Adani Ports, Larsen & Toubro, Reliance, Asian Paints, and IndiGo, rising by up to 4.32%. The top laggards were Infosys, Axis Bank, Trent, Titan, TCS, Bajaj Finance, and Tata Steel, falling by up to 1.17%.
Key factors behind the market rally:
Value buying after sharp correction
Markets saw strong value buying following the steep sell-off in the previous session. On February 1, benchmark indices had recorded their sharpest percentage decline on a Budget Day in six years, as investors digested the implications of the Union Budget 2026-27. The correction prompted bargain hunting across select stocks.
Budget focus on long-term growth
Investor confidence was also supported by Budget announcements aimed at long-term growth. The finance minister unveiled measures to boost manufacturing, announced long-term tax incentives for global data centres, and outlined support for agriculture and tourism. The Rs 53.5 lakh crore Union Budget for 2026–27 signalled a commitment to fiscal consolidation while maintaining momentum in infrastructure spending.
Strengthening rupee
The rupee’s recovery also aided market sentiment. The domestic currency strengthened by 37 paise to 91.56 against the US dollar on Monday, a day after the Budget was presented, largely tracking the fall in crude oil prices. At the interbank foreign exchange market, the rupee opened at 91.95 and later gained ground to 91.56, up 37 paise from its previous close.
Forex traders, however, cautioned that while the Budget provided reassurance, it did not offer immediate relief. They also flagged the government’s borrowing plan of Rs 17.2 lakh crore in the next financial year to fund a fiscal deficit estimated at 4.3 per cent of GDP as a potential overhang on sentiment.
Sharp fall in crude oil prices
Sentiment was further lifted by a sharp decline in crude oil prices. Brent crude, the global benchmark, slipped 4.14 per cent to $66.45 per barrel. Lower crude prices help ease inflationary pressures and improve India’s trade balance, both of which are supportive for equity markets.
February 02, 2026, 13:17 IST
Read More
