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Indian stocks to open 2.5% higher after US-India trade deal news, US to lower reciprocal tariff on Indian goods from 25 percent to 18 percent, India agrees to stop buying Russian oil and purchase more US products

* Indian stocks to open 2.5% higher after US-India trade deal news
* US to lower reciprocal tariff on Indian goods from 25 percent to 18 percent
* India agrees to stop buying Russian oil and purchase more US products

Indian stock markets are set to open 2.5% higher after the US and India agreed on a trade deal. The US will lower tariffs on Indian goods to 18%, and India will buy more US products and stop purchasing Russian oil, boosting bilateral cooperation.

shorts/business/india-us-trade-deal-announced-markets-likely-to-open-2-5-higher-on-tuesday-as-gift-nifty-surges-over-600-points

* Indian stocks to open 2.5% higher after US-India trade deal news
* US to lower reciprocal tariff on Indian goods from 25 percent to 18 percent
* India agrees to stop buying Russian oil and purchase more US products

Indian stock markets are likely to open nearly 3% higher on February 3 as US President Donald Trump on February 2 said he had agreed on a <a href="https://www.moneycontrol.com/world/modi-welcomes-trump-s-tariff-cut-in-new-india-us-trade-deal-article-13806704.html">trade deal with India, </a>and that India also agreed to stop buying Russian oil and buy more from the United States and potentially Venezuela.

“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%,” Trump said in a social media post following a call with Prime Minister Narendra Modi.

Modi also committed to buy more than $500 billion worth of US energy, technology, agricultural and other products, Trump added.

At 11:40 pm on February 2, GIFT Nifty, typically an early indicator of how Indian equities are likely to start trading, was trading 2.8% or 695 points higher. If the GIFT Nifty trend holds on February 3, Nifty would basically give a 1,000-point jump from Budget lows on February 1.

The American Depository Receipts of Wipro, Infosys and ICICI Bank were trading 3.36%, 6.55% and 4.17% higher, respectively.

The trade deal was a major overhang for Indian equities. Rupee also was under pressure due to foreign outflows.

PM Modi thanked Trump for a trade deal between the two nations on February 2, moments after Trump unveiled a deal reducing reciprocal tariffs on India to 18%.

"Delighted that Made in India products will now have a reduced tariff of 18%," Modi said in a post on X, adding that he looked forward to working closely with the U.S. President.

"India-US trade deal has gone through ups and downs like a roller coaster. While devil is in the details, it removes a hanging sword over rupee, equity and rates market. Let us hope that it is a win-win deal for both the countries as they have lot to gain through cooperation," said Nilesh Shah, MD, Kotak Mahindra AMC.

The Trump administration is dropping a 25% additional tariffs imposed on Indian imports over its purchases of Russian oil, in addition to lowering a country-specific tariff to 18% from 25%, a White House official said on Monday.

"We are also dropping the 25% tariff given India's agreement to stop buying Russian oil," the official said.

Trump announced the changes in a Truth Social post following a call with Modi, but did not explicitly address the 25% tariff he imposed in August to pressure New Delhi to stop buying Russian oil.

In August 2025, Trump announced 50% tariffs on Indian goods being shipped to US, citing India's continued purchase of Russian oil.

On February 2, the Nifty 50 rose 1.06% to 25,088.4, while the BSE Sensex added 1.17% to 81,666.46.

"The reduction in tariffs from 25% to 18% under the newly signed India–US trade deal is a meaningful positive for Indian equities, both from a sentiment and earnings visibility standpoint. The sharp 600-point surge in GIFT Nifty reflects an immediate repricing of risk, driven by expectations of improved trade competitiveness, lower input costs for exporters, and stronger bilateral economic alignment between the two countries.

"From a sectoral lens, export-oriented segments such as IT services, pharmaceuticals, specialty chemicals, auto ancillaries, and select engineering goods stand to benefit the most. Lower tariff barriers improve price competitiveness for Indian firms in the US market, which remains India’s largest export destination. Over time, this could translate into better order inflows, margin stability, and higher capacity utilisation. Domestic manufacturing themes tied to global supply chain diversification also get reinforced.

"At a macro level, the deal signals strategic continuity in India’s trade policy and strengthens India’s positioning as a preferred partner amid ongoing global trade realignments. While the near-term market reaction is understandably sharp, sustainability will depend on execution, sector-specific uptake, and whether earnings upgrades follow. Still, as a signal, this is a clear risk-on trigger," said Sonam Srivastava, Founder and Fund Manager at Wright Research PMS.

With inputs from Reuters

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India-US trade deal announced: Markets likely to open nearly 3% higher on Tuesday as GIFT Nifty surges 700 points

Indian stock markets are likely to open nearly 3% higher on February 3 as US President Donald Trump on February 2 said he had agreed on a trade deal with India, and that India also agreed to stop buying Russian oil and buy more from the United States and potentially Venezuela.

“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%,” Trump said in a social media post following a call with Prime Minister Narendra Modi.

Modi also committed to buy more than $500 billion worth of US energy, technology, agricultural and other products, Trump added.

At 11:40 pm on February 2, GIFT Nifty, typically an early indicator of how Indian equities are likely to start trading, was trading 2.8% or 695 points higher. If the GIFT Nifty trend holds on February 3, Nifty would basically give a 1,000-point jump from Budget lows on February 1.

The American Depository Receipts of Wipro, Infosys and ICICI Bank were trading 3.36%, 6.55% and 4.17% higher, respectively.

The trade deal was a major overhang for Indian equities. Rupee also was under pressure due to foreign outflows.

PM Modi thanked Trump for a trade deal between the two nations on February 2, moments after Trump unveiled a deal reducing reciprocal tariffs on India to 18%.

&quot;Delighted that Made in India products will now have a reduced tariff of 18%,&quot; Modi said in a post on X, adding that he looked forward to working closely with the U.S. President.

&quot;India-US trade deal has gone through ups and downs like a roller coaster. While devil is in the details, it removes a hanging sword over rupee, equity and rates market. Let us hope that it is a win-win deal for both the countries as they have lot to gain through cooperation,&quot; said Nilesh Shah, MD, Kotak Mahindra AMC.

The Trump administration is dropping a 25% additional tariffs imposed on Indian imports over its purchases of Russian oil, in addition to lowering a country-specific tariff to 18% from 25%, a White House official said on Monday.

&quot;We are also dropping the 25% tariff given India's agreement to stop buying Russian oil,&quot; the official said.

Trump announced the changes in a Truth Social post following a call with Modi, but did not explicitly address the 25% tariff he imposed in August to pressure New Delhi to stop buying Russian oil.

In August 2025, Trump announced 50% tariffs on Indian goods being shipped to US, citing India's continued purchase of Russian oil.

On February 2, the Nifty 50 rose 1.06% to 25,088.4, while the BSE Sensex added 1.17% to 81,666.46.

&quot;The reduction in tariffs from 25% to 18% under the newly signed India–US trade deal is a meaningful positive for Indian equities, both from a sentiment and earnings visibility standpoint. The sharp 600-point surge in GIFT Nifty reflects an immediate repricing of risk, driven by expectations of improved trade competitiveness, lower input costs for exporters, and stronger bilateral economic alignment between the two countries.

&quot;From a sectoral lens, export-oriented segments such as IT services, pharmaceuticals, specialty chemicals, auto ancillaries, and select engineering goods stand to benefit the most. Lower tariff barriers improve price competitiveness for Indian firms in the US market, which remains India’s largest export destination. Over time, this could translate into better order inflows, margin stability, and higher capacity utilisation. Domestic manufacturing themes tied to global supply chain diversification also get reinforced.

&quot;At a macro level, the deal signals strategic continuity in India’s trade policy and strengthens India’s positioning as a preferred partner amid ongoing global trade realignments. While the near-term market reaction is understandably sharp, sustainability will depend on execution, sector-specific uptake, and whether earnings upgrades follow. Still, as a signal, this is a clear risk-on trigger,&quot; said Sonam Srivastava, Founder and Fund Manager at Wright Research PMS.

With inputs from Reuters

STT on futures up to 0.05%, options premium to 0.15% from April 1., Higher STT will raise trading costs for futures and options traders., Markets rebound on Monday; Sensex, Nifty gain 1%.

* STT on futures up to 0.05%, options premium to 0.15% from April 1.
* Higher STT will raise trading costs for futures and options traders.
* Markets rebound on Monday; Sensex, Nifty gain 1%.

Finance Minister Nirmala Sitharaman announced a sharp hike in Securities Transaction Tax on futures and options trades from April 1, raising trading costs and potentially impacting FPI flows, especially for high-frequency and derivative-focused global funds.

shorts/business/how-stt-hike-on-f-o-trading-could-eat-into-your-profits-from-april-1

* STT on futures up to 0.05%, options premium to 0.15% from April 1.
* Higher STT will raise trading costs for futures and options traders.
* Markets rebound on Monday; Sensex, Nifty gain 1%.

Finance Minister Nirmala Sitharaman, in her Budget speech for 2026-27, announced an increase in the Securities Transaction Tax (STT) on futures and options (F&amp;O) trades, a move that will raise transaction costs for market participants from April 1.

The STT on futures contracts has been increased to 0.05 percent from the existing 0.02 percent, marking a 150 percent hike. In the case of options, STT on the premium has been raised to 0.15 percent from 0.10 percent, a 50 percent increase, while STT on exercised options has been increased to 0.15 percent from 0.125 percent, a hike of 20 percent.

The higher levy will directly impact trading costs. For instance, in a Nifty futures trade with a contract value of Rs 50,00,000, STT at the revised rate of 0.05 percent works out to Rs 2,500, compared with Rs 1,000 earlier when the rate was 0.02 percent. On a contract value of Rs 10,00,000, the STT rises to Rs 500 from Rs 200 previously.

If a trader executes 20 such futures trades in a month, the additional STT alone would amount to Rs 30,000 on a Rs 50,00,000 contract value, even before accounting for brokerage, exchange charges and GST. However, the actual costs will vary depending on market levels and contract values.

In the options segment, consider a Nifty options trade where the option premium is Rs 100 and the lot size is 50. The total premium value comes to Rs 5,000. At the revised STT rate of 0.15 percent, the tax payable is Rs 7.50, compared with Rs 5 earlier.

For an active options trader executing around 300 such trades in a month, the additional STT adds up to Rs 750. For volume-driven or scalping strategies that rely on tight spreads, this increase can quietly eat into overall returns.

Going ahead, the sharp increase of STT in futures and options is likely to act as a marginal negative for FPI flows in the near term, particularly for high-frequency and derivative-focused global funds, said Aakash Shah, Technical Research Analyst at Choice Equity Broking.

Meanwhile, the stock markets rebounded on Monday on value buying after facing a massive drubbing on the Budget day. The Sensex rallied 943.52 points or 1.17 percent, to settle at 81,666.46. The Nifty climbed 262.95 points or 1.06 percent to end at 25,088.40.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

How STT hike on F&O trading could eat into your profits from April 1

Finance Minister Nirmala Sitharaman, in her Budget speech for 2026-27, announced an increase in the Securities Transaction Tax (STT) on futures and options (F&amp;amp;O) trades, a move that will raise transaction costs for market participants from April 1.

The STT on futures contracts has been increased to 0.05 percent from the existing 0.02 percent, marking a 150 percent hike. In the case of options, STT on the premium has been raised to 0.15 percent from 0.10 percent, a 50 percent increase, while STT on exercised options has been increased to 0.15 percent from 0.125 percent, a hike of 20 percent.

The higher levy will directly impact trading costs. For instance, in a Nifty futures trade with a contract value of Rs 50,00,000, STT at the revised rate of 0.05 percent works out to Rs 2,500, compared with Rs 1,000 earlier when the rate was 0.02 percent. On a contract value of Rs 10,00,000, the STT rises to Rs 500 from Rs 200 previously.

If a trader executes 20 such futures trades in a month, the additional STT alone would amount to Rs 30,000 on a Rs 50,00,000 contract value, even before accounting for brokerage, exchange charges and GST. However, the actual costs will vary depending on market levels and contract values.

In the options segment, consider a Nifty options trade where the option premium is Rs 100 and the lot size is 50. The total premium value comes to Rs 5,000. At the revised STT rate of 0.15 percent, the tax payable is Rs 7.50, compared with Rs 5 earlier.

For an active options trader executing around 300 such trades in a month, the additional STT adds up to Rs 750. For volume-driven or scalping strategies that rely on tight spreads, this increase can quietly eat into overall returns.

Going ahead, the sharp increase of STT in futures and options is likely to act as a marginal negative for FPI flows in the near term, particularly for high-frequency and derivative-focused global funds, said Aakash Shah, Technical Research Analyst at Choice Equity Broking.

Meanwhile, the stock markets rebounded on Monday on value buying after facing a massive drubbing on the Budget day. The Sensex rallied 943.52 points or 1.17 percent, to settle at 81,666.46. The Nifty climbed 262.95 points or 1.06 percent to end at 25,088.40.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

How STT hike on F&amp;O trading could eat into your profits from April 1

Sensex and Nifty fell post-Budget 2026, rebounded over 1% the next day., Budget 2026 raised STT on derivatives, increasing trading costs for investors, Near-term FII flows may remain volatile due to higher costs and global headwinds

* Sensex and Nifty fell post-Budget 2026, rebounded over 1% the next day.
* Budget 2026 raised STT on derivatives, increasing trading costs for investors
* Near-term FII flows may remain volatile due to higher costs and global headwinds

Indian markets plunged after Budget 2026 raised STT on derivatives, but rebounded on value-buying and positive growth outlook. Analysts say higher trading costs may deter foreign investors short-term, though long-term sentiment toward India remains positive.

shorts/business/will-budget-2026-deter-foreign-investors-even-more-here-s-what-analysts-say

* Sensex and Nifty fell post-Budget 2026, rebounded over 1% the next day.
* Budget 2026 raised STT on derivatives, increasing trading costs for investors
* Near-term FII flows may remain volatile due to higher costs and global headwinds

Indian stock markets have seen significant volatility after Union Finance Minister Nirmala Sitharaman presented Union Budget 2026. Analysts have highlighted what to expect from foreign investors in the near-term.

After the Budget yesterday, <a href="https://www.moneycontrol.com/indian-indices/SENSEX-4.html">Sensex</a> crashed around 2 percent and <a href="https://www.moneycontrol.com/indian-indices/nifty-50-9.html">Nifty 50</a> plunged nearly 3 percent on February 1. However, markets rebounded the next day, with Sensex and Nifty rising more than 1 percent each to end the session at 81,666.46 and 25,088.40, respectively, on February 2.

On February 1, foreign institutional investors (FIIs) sold equities worth Rs 588 crore, while domestic institutional investors (DIIs) also remained net sellers, offloading shares worth Rs 682 crore.
<h3>What bothered the markets yesterday?</h3>
While presenting Budget 2026, Finance Minister Nirmala Sitharaman <a href="https://www.moneycontrol.com/news/business/markets/what-s-good-and-bad-in-budget-2026-for-stock-markets-here-s-what-analysts-say-13803700.html">raised STT on futures</a> to 0.05 percent from 0.02 percent. This was seen as a significant reason for the market crash yesterday, as investors on the contrary had expected significant relief on this front.

For every Rs 1 lakh worth of futures sold, traders will now pay Rs 20 in STT instead of the previous Rs 12.50, explained Ashish Singhal, Co-founder of Lemonn. For a Rs 10,000 option contract sale, STT increased to Rs 10 from Rs 6.25, he added.

"The steep increase in STT on futures and options, coming on top of last year’s hike, is likely to raise impact costs for traders, hedgers, and arbitrageurs. This could cool derivative activity and lead to a reduction in volumes. The intent appears to be volume moderation rather than revenue maximisation, as any potential revenue gain could be offset by lower derivative volumes," said Shripal Shah, MD &amp; CEO, Kotak Securities.
<h3>What boosted markets today?</h3>
Today’s <a href="https://www.moneycontrol.com/news/business/markets/market-volatile-during-budget-2026-sensex-falls-500-pts-from-day-s-high-nifty-below-25-300-3-key-reasons-behind-sharp-market-decline-13802623.html">sharp rise in markets</a> comes amid value-buying, decline in crude oil prices and some positive aspects about the Budget which focused on long-term growth. “The expectations regarding budget was flat, and it came flat as well, so market is recovering from yesterday level. After the sharp selloff seen post the Union Budget 2026, Indian equity markets witnessed a meaningful rebound as investors reassessed the announcements with a calmer lens,” said Abhinav Tiwari, Research Analyst at Bonanza.
<h3>Will Budget 2026 scare away foreign investors?</h3>
The STT raise on derivatives in Budget 2026-27 presents a near-term disadvantage for FII flows, particularly for derivative-focused funds, said Nitant Darekar Research Analyst at Bonanza. "With Rs 41,000 crore in FPI outflows already recorded in January 2026 due to rising US yields and currency pressures, increasing transaction costs diminish post-tax profits, lowering India's competitiveness in comparison to other Asian markets," he said.

While fundamentally-driven long-only FPIs remain insulated, tactical and high-frequency participants face margin compression, the analyst further said, adding that near-term selloff intensification is probable as reduced trading efficiency compounds existing global risk-off sentiment. "Sustained FPI revival hinges on macro stability and rupee trajectory rather than transaction tax adjustments alone," he added.

The initial effect of the Budget on FIIs was negative, mainly because of the increase in transaction taxes and the absence of direct incentives for foreign investments, said Siddharth Maurya, Founder &amp; Managing Director, Vibhavangal Anukulakara.

"The increase in STT on derivatives will increase the cost of trading, which could be a deterrent for FIIs in the short term. However, policies that increase access to foreign investors and a fiscal agenda could help to stabilize foreign flows in the medium term," the analyst said.

'Budget was more about missed opportunities than negative surprises':

According to Maurya, the selling trend could be slowed down or reversed if the government brings about FII-friendly reforms, or else it will remain cautious.

From an FII standpoint, the Union Budget was more about "missed opportunities than negative surprises", said Naren Agarwal, CEO, Wealth1. "While the commitment to fiscal consolidation, with the fiscal deficit targeted at around 4.3% of GDP, and continued policy support for GIFT City were positives, the sharp increase in Securities Transaction Tax on futures and options significantly raised transaction costs and hurt sentiment, especially for global trading-oriented investors," he said.

'Long-term allocators still view India favourably':

The Budget did little to counter these global headwinds through capital-market-specific incentives such as rationalisation of capital gains or tax clarity for foreign investors, the analyst added. He explained that any continuation of FII selling is likely to be flow-driven and tactical rather than a structural reassessment of India.

"Long-term allocators still view India favourably within emerging markets, but near-term foreign flows are expected to remain volatile until global interest rate conditions ease," he added.

Follow all <a href="https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-gift-nifty-hints-a-positive-start-us-markets-down-asia-mixed-liveblog-13804109.html">LIVE updates</a> from the stock markets here.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Will Budget 2026 deter foreign investors even more? Here's what analysts say

Indian stock markets have seen significant volatility after Union Finance Minister Nirmala Sitharaman presented Union Budget 2026. Analysts have highlighted what to expect from foreign investors in the near-term.

After the Budget yesterday, Sensex crashed around 2 percent and Nifty 50 plunged nearly 3 percent on February 1. However, markets rebounded the next day, with Sensex and Nifty rising more than 1 percent each to end the session at 81,666.46 and 25,088.40, respectively, on February 2.

On February 1, foreign institutional investors (FIIs) sold equities worth Rs 588 crore, while domestic institutional investors (DIIs) also remained net sellers, offloading shares worth Rs 682 crore.
What bothered the markets yesterday?
While presenting Budget 2026, Finance Minister Nirmala Sitharaman raised STT on futures to 0.05 percent from 0.02 percent. This was seen as a significant reason for the market crash yesterday, as investors on the contrary had expected significant relief on this front.

For every Rs 1 lakh worth of futures sold, traders will now pay Rs 20 in STT instead of the previous Rs 12.50, explained Ashish Singhal, Co-founder of Lemonn. For a Rs 10,000 option contract sale, STT increased to Rs 10 from Rs 6.25, he added.

&quot;The steep increase in STT on futures and options, coming on top of last year’s hike, is likely to raise impact costs for traders, hedgers, and arbitrageurs. This could cool derivative activity and lead to a reduction in volumes. The intent appears to be volume moderation rather than revenue maximisation, as any potential revenue gain could be offset by lower derivative volumes,&quot; said Shripal Shah, MD &amp;amp; CEO, Kotak Securities.
What boosted markets today?
Today’s sharp rise in markets comes amid value-buying, decline in crude oil prices and some positive aspects about the Budget which focused on long-term growth. “The expectations regarding budget was flat, and it came flat as well, so market is recovering from yesterday level. After the sharp selloff seen post the Union Budget 2026, Indian equity markets witnessed a meaningful rebound as investors reassessed the announcements with a calmer lens,” said Abhinav Tiwari, Research Analyst at Bonanza.
Will Budget 2026 scare away foreign investors?
The STT raise on derivatives in Budget 2026-27 presents a near-term disadvantage for FII flows, particularly for derivative-focused funds, said Nitant Darekar Research Analyst at Bonanza. &quot;With Rs 41,000 crore in FPI outflows already recorded in January 2026 due to rising US yields and currency pressures, increasing transaction costs diminish post-tax profits, lowering India's competitiveness in comparison to other Asian markets,&quot; he said.

While fundamentally-driven long-only FPIs remain insulated, tactical and high-frequency participants face margin compression, the analyst further said, adding that near-term selloff intensification is probable as reduced trading efficiency compounds existing global risk-off sentiment. &quot;Sustained FPI revival hinges on macro stability and rupee trajectory rather than transaction tax adjustments alone,&quot; he added.

The initial effect of the Budget on FIIs was negative, mainly because of the increase in transaction taxes and the absence of direct incentives for foreign investments, said Siddharth Maurya, Founder &amp;amp; Managing Director, Vibhavangal Anukulakara.

&quot;The increase in STT on derivatives will increase the cost of trading, which could be a deterrent for FIIs in the short term. However, policies that increase access to foreign investors and a fiscal agenda could help to stabilize foreign flows in the medium term,&quot; the analyst said.

'Budget was more about missed opportunities than negative surprises':

According to Maurya, the selling trend could be slowed down or reversed if the government brings about FII-friendly reforms, or else it will remain cautious.

From an FII standpoint, the Union Budget was more about &quot;missed opportunities than negative surprises&quot;, said Naren Agarwal, CEO, Wealth1. &quot;While the commitment to fiscal consolidation, with the fiscal deficit targeted at around 4.3% of GDP, and continued policy support for GIFT City were positives, the sharp increase in Securities Transaction Tax on futures and options significantly raised transaction costs and hurt sentiment, especially for global trading-oriented investors,&quot; he said.

'Long-term allocators still view India favourably':

The Budget did little to counter these global headwinds through capital-market-specific incentives such as rationalisation of capital gains or tax clarity for foreign investors, the analyst added. He explained that any continuation of FII selling is likely to be flow-driven and tactical rather than a structural reassessment of India.

&quot;Long-term allocators still view India favourably within emerging markets, but near-term foreign flows are expected to remain volatile until global interest rate conditions ease,&quot; he added.

Follow all LIVE updates from the stock markets here.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Sensex rose 943 points, Nifty up 263 points, rebounding after Budget day losses, FMCG, metal, oil & gas, infra, realty sectors rose 1-2%; IT index dropped 0.5%, Over 350 stocks hit 52-week lows despite overall market recovery

* Sensex rose 943 points, Nifty up 263 points, rebounding after Budget day losses
* FMCG, metal, oil & gas, infra, realty sectors rose 1-2%; IT index dropped 0.5%
* Over 350 stocks hit 52-week lows despite overall market recovery

Indian equity benchmarks rebounded on February 2, with Sensex up 943 points and Nifty rising 263 points, erasing some Budget day losses. FMCG, metal, and energy sectors gained, while IT fell. Over 350 stocks hit 52-week lows amid volatile trading.

shorts/business/taking-stock-markets-recover-after-budget-day-selloff-sensex-rises-944-pts-nifty-ends-near-25-100

* Sensex rose 943 points, Nifty up 263 points, rebounding after Budget day losses
* FMCG, metal, oil & gas, infra, realty sectors rose 1-2%; IT index dropped 0.5%
* Over 350 stocks hit 52-week lows despite overall market recovery

In a volatile session on February 2, Indian equity benchmarks made a smart recovery to close higher, erasing part of the losses from the previous Budget day, with the Nifty ending close to the 25,100 mark.

Tracking mixed global cues, the indices opened lower and remained range-bound and volatile during the first half of the session. However, sustained buying interest in the latter half helped the market recover and settle near the day’s high.

At close, the Sensex was up 943.52 points or 1.17 percent at 81,666.46, and the Nifty was up 262.95 points or 1.06 percent at 25,088.40.

Broader indices also staged a smart rebound from intraday lows as the Nifty Midcap climbed 1 percent and the Nifty Smallcap advanced 0.6 percent.

Also Read - <a href="https://www.moneycontrol.com/news/business/markets/markets-in-middle-of-the-pendulum-neither-greed-nor-fear-dominates-s-naren-13805214.html">Markets in middle of the pendulum, neither greed nor fear dominates: S Naren</a>

Tata Motors Passenger Vehicles, Tata Consumer, Adani Ports, Power Grid, Bharat Electronics were among major gainers on the Nifty, while losers included Shriram Finance, Max Healthcare, Cipla, Axis Bank, Infosys.

On the sectoral front, FMCG, metal, oil &amp; gas, energy, infra, realty jumped 1-2%, while IT index shed 0.5%.

Also Read - <a href="https://www.moneycontrol.com/news/business/axis-bank-said-to-be-in-the-lead-to-buy-out-creditaccess-grameen-13805239.html">Axis Bank said to be in the lead to buy out CreditAccess Grameen</a>

In stock specific, E2E Networks, Anant Raj, jumped 5 each on tax holiday announcement in Budget, Bharat Dynamics fell 4% in absence of major policy announcements, Atul Auto shares added 8% on robust January sales number, Shriram Finance shed 3% after the government announced a record borrowing plan in the Budget.

Saksoft share price declined 2% despite better Q3 earnings, Gateway Distriparks shares rose 4% on acquiring land to build ICD in Indore, Sundaram Finance shares rose 8% on strong Q3 results, Mahindra Lifespace Developers share price added 4% on turning profitable in Q3, Bharat Forge shares added 5% after arm secures Rs 300 crore investment from PI Opportunities Fund.

Also Read - <a href="https://www.moneycontrol.com/news/business/markets/gold-silver-etfs-tumble-up-to-20-as-precious-metals-crash-further-what-should-investors-do-13804628.html">Gold, silver ETFs crash up to 20% as precious metals futures plunge up to 18%: What should investors do?</a>

More than 350 stocks touched their 52-week lows, including Five-Star Business Finance, KEC International, Transformers and Rectifiers India , Poly Medicure, Reliance Power, Carborundum, IEX, Network 18, Newgen Software, Aditya Birla Re, L&amp;T Technology, Jyothy Labs, Concord Biotech, C. E. Info Systems (MapmyIndia), SJVN, Max Healthcare, NTPC Green Energy , Cohance Lifesciences, Just Dial, Blue Jet, among others. <a href="https://www.moneycontrol.com/stocks/market-stats/52-week-low-bse/?indexName=BSE%2520500&amp;id=12">Click to View More</a>

Outlook for February 3

Rupak De, Senior Technical Analyst at LKP Securities

After a sharp fall, the Nifty has seen a strong bounce, which is a normal market reaction. However, the broader trend remains weak. As long as the index stays below the 200-DMA, sentiment is likely to remain negative, and any bounce should be used to exit leveraged long positions or to create short positions.

On the upside, immediate resistance is placed at 25,200, while on the downside, support is seen around 24,900.

Shrikant Chouhan, Head Equity Research, Kotak Securities

Today, the benchmark indices witnessed a promising pullback rally. The Nifty ended 263 points higher, while the Sensex was up by 944 points. Among sectors, the Capital Market Index outperformed, rallying over 3 percent, whereas despite strong momentum, the IT index traded into negative territory, shedding nearly 0.50 percent.

Technically, after an early morning intraday dip, the market took support near 24,700/80400 and bounced back sharply. From the day's lowest point, the market rallied over 400/1300 points. Additionally, on intraday charts, it has formed a promising reversal pattern, and on daily charts, it formed a bullish candle, which supports a further uptrend from the current levels.

We are of the view that now, 25,000/81500 and 24,900/81200 will act as immediate support zones for the bulls. Above these levels, a pullback formation is likely to continue, with the market potentially moving up to 25,250/82200 or the 200-day simple moving average (SMA). Further upside could also push the market toward 25,350/82500.

On the flip side, if the market falls below 24,900/81200, sentiment could change. Below this level, traders may prefer to exit their long positions.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Taking Stock: Markets recover after Budget day selloff; Sensex rises 944 pts, Nifty ends near 25,100

In a volatile session on February 2, Indian equity benchmarks made a smart recovery to close higher, erasing part of the losses from the previous Budget day, with the Nifty ending close to the 25,100 mark.

Tracking mixed global cues, the indices opened lower and remained range-bound and volatile during the first half of the session. However, sustained buying interest in the latter half helped the market recover and settle near the day’s high.

At close, the Sensex was up 943.52 points or 1.17 percent at 81,666.46, and the Nifty was up 262.95 points or 1.06 percent at 25,088.40.

Broader indices also staged a smart rebound from intraday lows as the Nifty Midcap climbed 1 percent and the Nifty Smallcap advanced 0.6 percent.

Also Read - Markets in middle of the pendulum, neither greed nor fear dominates: S Naren

Tata Motors Passenger Vehicles, Tata Consumer, Adani Ports, Power Grid, Bharat Electronics were among major gainers on the Nifty, while losers included Shriram Finance, Max Healthcare, Cipla, Axis Bank, Infosys.

On the sectoral front, FMCG, metal, oil &amp;amp; gas, energy, infra, realty jumped 1-2%, while IT index shed 0.5%.

Also Read - Axis Bank said to be in the lead to buy out CreditAccess Grameen

In stock specific, E2E Networks, Anant Raj, jumped 5 each on tax holiday announcement in Budget, Bharat Dynamics fell 4% in absence of major policy announcements, Atul Auto shares added 8% on robust January sales number, Shriram Finance shed 3% after the government announced a record borrowing plan in the Budget.

Saksoft share price declined 2% despite better Q3 earnings, Gateway Distriparks shares rose 4% on acquiring land to build ICD in Indore, Sundaram Finance shares rose 8% on strong Q3 results, Mahindra Lifespace Developers share price added 4% on turning profitable in Q3, Bharat Forge shares added 5% after arm secures Rs 300 crore investment from PI Opportunities Fund.

Also Read - Gold, silver ETFs crash up to 20% as precious metals futures plunge up to 18%: What should investors do?

More than 350 stocks touched their 52-week lows, including Five-Star Business Finance, KEC International, Transformers and Rectifiers India , Poly Medicure, Reliance Power, Carborundum, IEX, Network 18, Newgen Software, Aditya Birla Re, L&amp;amp;T Technology, Jyothy Labs, Concord Biotech, C. E. Info Systems (MapmyIndia), SJVN, Max Healthcare, NTPC Green Energy , Cohance Lifesciences, Just Dial, Blue Jet, among others. Click to View More

Outlook for February 3

Rupak De, Senior Technical Analyst at LKP Securities

After a sharp fall, the Nifty has seen a strong bounce, which is a normal market reaction. However, the broader trend remains weak. As long as the index stays below the 200-DMA, sentiment is likely to remain negative, and any bounce should be used to exit leveraged long positions or to create short positions.

On the upside, immediate resistance is placed at 25,200, while on the downside, support is seen around 24,900.

Shrikant Chouhan, Head Equity Research, Kotak Securities

Today, the benchmark indices witnessed a promising pullback rally. The Nifty ended 263 points higher, while the Sensex was up by 944 points. Among sectors, the Capital Market Index outperformed, rallying over 3 percent, whereas despite strong momentum, the IT index traded into negative territory, shedding nearly 0.50 percent.

Technically, after an early morning intraday dip, the market took support near 24,700/80400 and bounced back sharply. From the day's lowest point, the market rallied over 400/1300 points. Additionally, on intraday charts, it has formed a promising reversal pattern, and on daily charts, it formed a bullish candle, which supports a further uptrend from the current levels.

We are of the view that now, 25,000/81500 and 24,900/81200 will act as immediate support zones for the bulls. Above these levels, a pullback formation is likely to continue, with the market potentially moving up to 25,250/82200 or the 200-day simple moving average (SMA). Further upside could also push the market toward 25,350/82500.

On the flip side, if the market falls below 24,900/81200, sentiment could change. Below this level, traders may prefer to exit their long positions.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Live: Nifty moves closer to 25,000 after Budget day selloff | Closing Bell

11 out of 17 years BSE MIDCAP has given negative returns in February.

Type	R1	R2	R3	PP	S1	S2	S3
Classic	44,846.44	45,446.61	45,779.50	44,513.55	43,913.38	43,580.49	42,980.32
Fibonacci	44,869.98	45,090.18	45,446.61	44,513.55	44,157.12	43,936.92	43,580.49
Camarilla	44,331.80	44,417.33	44,502.86	44,513.55	44,160.74	44,075.21	43,989.68

INDEX CONTRIBUTION - BSE MIDCAP

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