Mumbai: Indian stock markets bounced back in early trade on Monday after a heavy fall on Budget day. Investors returned to the market to buy large and well-known stocks at lower prices, following steep losses in the previous session.
The BSE Sensex rose by 302 points to 81,024.94 in early trade. At the same time, the NSE Nifty gained 59 points to reach 24,884.70.
Blue-chip stocks lead recovery
Most of the buying was seen in blue-chip companies. Shares of Adani Ports, Larsen & Toubro, Asian Paints, Bharat Electronics, Reliance Industries, Power Grid and HDFC Bank were among the top gainers.
On the other hand, stocks such as Trent, Titan, ITC and Hindustan Unilever were trading in the red and remained under pressure.
Budget impact still visible
The rebound comes a day after markets witnessed a sharp fall during the special trading session held on Sunday for the Union Budget. Finance Minister Nirmala Sitharaman presented a Rs 53.5 lakh crore Budget for 2026–27.
The Budget focused on boosting manufacturing, supporting agriculture and tourism, and offering long-term tax benefits for global data centres. It also continued the path of fiscal discipline and higher infrastructure spending.
However, a hike in the securities transaction tax (STT) on equity derivatives worried traders. This led to heavy selling in the market, especially in derivative-related stocks.
Big fall on Budget day
On Sunday, the Sensex closed at 80,722.94, down 1,546.84 points or 1.88%. The Nifty fell by 495.20 points or 1.96% to end at 24,825.45.
Foreign institutional investors (FIIs) sold shares worth Rs 588.34 crore, adding to the market pressure.
Weak global cues
Global markets were also negative, which affected investor mood. In Asia, South Korea’s Kospi fell more than 4%. Japan’s Nikkei, Shanghai Composite and Hong Kong’s Hang Seng were also trading lower.
US stock markets ended in the red on Friday.
Crude oil drops sharply
Crude oil prices fell sharply, with Brent crude dropping 4.14% to $66.45 per barrel. While lower oil prices are generally positive for India, the overall global risk sentiment remained weak.
Market experts say Monday’s rise is mainly due to short-term value buying after the sharp fall. However, they warn that volatility may continue in the coming days as investors closely track global markets and reactions to Budget measures.
