Stock Markets Rebound Over 1% After Budget Shock, Value Buying Lifts Sensex & Nifty

Mumbai: Indian stock markets rebounded strongly on Monday after witnessing a heavy sell-off during the special trading session on Budget day. Investors returned to the market with value buying in large and well-known companies, especially in oil & gas, banking and automobile stocks. This helped the benchmark indices recover more than 1 percent.

The BSE Sensex jumped 943 points, or 1.17 percent, to close at 81,666. During the day, it touched a high of 81,732. Similarly, the NSE Nifty gained nearly 263 points, or 1.06 percent, to settle at 25,088, after hitting an intraday high of 25,108.

Blue-chip stocks lead the rally

The recovery was led by strong buying in heavyweight stocks. Power Grid was the top gainer on the Sensex, rising over 7 percent, while Adani Ports gained nearly 5 percent. Other major gainers included Bharat Electronics, Reliance Industries, Mahindra & Mahindra, Larsen & Toubro, InterGlobe Aviation, ICICI Bank and UltraTech Cement.

On the other hand, a few stocks like Axis Bank, Infosys, Tata Consultancy Services, Trent and Titan ended in the red, as investors remained selective and cautious.

Budget impact still visible

The rebound came after markets had crashed sharply on Sunday following the presentation of the Union Budget for 2026-27. On Budget day, the Sensex had fallen nearly 1,550 points, while the Nifty had dropped close to 2 percent. The fall was mainly due to disappointment over the hike in securities transaction tax (STT) on equity derivatives and the government’s higher borrowing plan for FY27.

However, experts said that the broader Budget message was positive. The Finance Minister announced steps to boost manufacturing, offered long-term tax benefits for global data centres, and continued support for agriculture and tourism. The Budget also focused on fiscal discipline and infrastructure spending, which is seen as good for long-term growth.

Global cues and crude prices help

Another major factor supporting the market was the sharp fall in global crude oil prices. Lower oil prices reduce India’s import bill and help control inflation, which is positive for the economy and corporate profits. Brent crude fell nearly 5 percent to around USD 66 per barrel.

Market experts believe that easing geopolitical tensions and stable domestic policies may support markets in the medium term. However, volatility is expected to remain high due to weak global markets and continued selling by foreign investors.