Closing Bell: Bloodbath on Dalal Street as Sensex slides 1,547 pts; Nifty breaks 24,900

Indian equity indices ended on a negative note in the volatile session on February 1 (Budget day) with Nifty below 24,900. At close, the Sensex was down 1,546.84 points or 1.88 percent at 80,722.94, and the Nifty was down 495.20 points or 1.96 percent at 24,825.45.

We wrap up today's edition of the Moneycontrol live market blog, and will be back tomorrow morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

The Union Budget of FY27 managed a fine balancing act of maintaining capex growth at 12% despite revenue pressures, with a surge in short-term borrowings the only negative. The Nifty corrected 2% on Budget Day and we now see limited downside (1-2%) from current levels. A reversal of the recent correction, however, is heavily dependent on the arrest of the weakness in the rupee. The recent gold price crash, to that extent, is good news – as would be an early conclusion of the India-US trade deal.

#1 Q3FY26 EBITDA margin at 20.8 percent, +31 bps QoQ, in line

#2 Commodity inflation impacted margin by around 50 bps

#3 Currency tailwinds aided export realisations

#4 Domestic 2W growth seen at 12–15 percent with expected market share gains

#5 Exports guided to grow 20–25 percent YoY at 2 lakh+ units/month

#6 Q4 commodity impact of 50–60 bps expected, margin to remain resilient

Union Budget 2026 represents a fundamental shift in how India approaches workforce development. By prioritising capex, MSMEs, skills and future-facing industries, the government has laid the foundation for a more formal, skilled and geographically distributed talent ecosystem. From an HR perspective, this is exactly what the market needs, a move away from reactive hiring to proactive workforce capacity building. The proposed TDS rate of 1% for the staffing companies is a welcome change which will improve the cash flows for HR solutions companies like CIEL HR.

The true measure of success lies in execution. We must ensure that budgetary allocations are effectively channeled to the appropriate sectors. The critical challenge is the swift and large-scale bridging of skill deficits. Can we cultivate a nimble, industry-ready workforce capable of keeping pace with advancements in AI, automation and other emerging technologies? A positive affirmation to these questions is the key to unlocking India's next, truly transformative phase of economic growth; a phase fueled not just by investment and technology, but by our capacity to develop, deploy and continually upskill our human capital.”

This Budget marks a transition for the Indian debt market by introducing Total Return Swaps and a formal market-making framework. The government is finally addressing the 'liquidity paradox' that has long stifled corporate bonds, ensuring both issuers and investors benefit.

India Inc. requires ₹120 lakh crore in funding from FY26–30. Alongside wholesale lending and ECBs, retail participation in bonds can provide headroom of an additional ₹15–20 lakh crore on the projected base of ₹40 lakh crore.

Furthermore, the ₹100 crore incentive for mega municipal issuances is equally bold—it essentially puts a premium on urban governance. By incentivizing cities to tap capital markets rather than rely solely on grants, we are seeing a fundamental shift toward fiscal discipline at the grassroots. For the corporate sector, including NBFCs and housing, these aren't just incremental changes; they are the plumbing required to flow credit into 'Vikas' at a velocity we haven’t seen before.

At Horizon Industrial Parks, as India's largest and fastest growing industrial and logistics infrastructure developer; we see improved connectivity, expanding industrial corridors and higher state-led infrastructure spending will naturally accelerate demand for Grade-A, large-format warehouses and integrated logistics parks across key corridors and emerging tier-2 and tier-3 markets.

Union Budget 2026-27 continues emphasis on infrastructure as a growth engine, while seeking to enhance domestic manufacturing capabilities and attract international investments to Make in India for the world. Alongside the focus on scaling manufacturing, rejuvenating legacy sectors, clusters and developing city economic regions, this creates sustained momentum for India’s industrial and logistics ecosystem.

Overall, the Budget provides long-term visibility and confidence for institutional capital to invest at scale, positioning India as a globally competitive manufacturing and logistics hub.

Budget 2026-27 is a bold statement in terms of continuing on reforms while cautiously navigating the external environment. There is continued thrust on labour intensive sectors like manufacturing, infrastructure, tourism, while also incorporating new elements like services as core growth driver, path for education to employment and push on healthcare at all levels.

Structurally positive elements viz, focus on critical sectors like pharma, rare earth, semiconductors; extending policy push to city economic regions; aligning future ready financial systems for next phase of India’s growth story and inclusive access to resources, will help accelerate and sustain India’s economic growth.

Fiscal deficit targets have been lowered while keeping the momentum of higher capital expenditure with targeted 12.2 lakh crore capex in FY27. Self-reliant India fund for equity support to micro enterprises and creating future MSME champions could prove to be a game changer in fulfilling aspirations on the path of prosperity for the nation.

The Union Budget 2026–27 reinforces India’s focus on long-term, infrastructure-led growth. Continued momentum in infrastructure spending, with a clear thrust on transport corridors, high-speed rail and digital infrastructure, is a strong positive. The extension of tax holidays for foreign companies setting up data centres is particularly constructive, strengthening India’s digital backbone and creating durable spillovers across power, telecom, real estate and IT services. This growth orientation, delivered alongside fiscal discipline, supports confidence in India’s broader macro framework.

Market unease, however, is centred on the increase in STT on F&O, particularly the sharper hike on futures. This comes on the back of higher capital gains taxes last year, raising overall transaction costs for market participants. Futures are a margined, risk-managed product and not typically the primary source of retail excess, which raises questions on whether higher STT will deliver the desired outcome or instead weigh on liquidity, participation and India’s market cost competitiveness. These concerns are being voiced by foreign investors and domestic traders, and are reflected in the immediate market reaction.

Overall, the Budget scores well on structural growth and long-term competitiveness, but near-term market sentiment is likely to remain sensitive to how higher transaction costs impact trading behaviour and capital flows.

The 2026 Budget aims to balance growth and stability by leveraging the available strength of its consolidated financials, following the extensive reforms over the past one to three years. These measures may result to a modest near-term total receipt, which had led to low stock market expectations for further tax and non-tax reforms. Despite external challenges, the budget is structured around a nominal GDP growth target of 10% higher than in FY26. This optimistic outlook is driven by an anticipated rise in domestic demand, supported by the long-term multiplier effect of the implemented reforms. However, this forecast must navigate external challenges such as tariffs and geopolitical tensions, amidst a low inflationary environment.

The budget supports sectors affected by global trade tariffs and focuses on emerging areas of development, including data centers, GCC, semiconductors, biopharma, rare earth elements, and manufacturing. Additionally, it extends support to traditional sectors like textiles, aquaculture, and MSMEs, which have been impacted by global protectionist trade policies. Despite these measures, the market's reaction has been negative, primarily due to low expectations, limited outlays and the negative bias created by the increased Securities Transaction Tax (STT) for futures, triggering a knee-jerk response.

The benchmark Nifty index witnessed heightened volatility on Union Budget Day, recording an intraday swing of 869 points, which was its widest trading range since June 04, 2024. Market sentiment turned sharply negative during Finance Minister Nirmala Sitharaman’s Budget speech, particularly after the proposal to increase the Securities Transaction Tax (STT) on Futures and Options, which triggered aggressive selling across the market.

The Nifty slipped to an intraday low of 24571 before stabilizing and recovering part of the losses, eventually closing at 24825 with a decline of nearly 2%. On the technical front, the index formed a bearish candle accompanied by a long lower shadow on a daily chart, reflecting deep intraday selling followed by partial buying interest.

Volatility spiked notably, with India VIX surging more than 10%, indicating rising trader uncertainty. Among Nifty constituents, TCS and Max Healthcare emerged as the top gainers, while Hindalco and SBI led the list of losers. Sectorally, the market saw broad-based pressure, with every major index closing in the red except Nifty IT. The worst-performing sectors were Nifty PSU Bank and Nifty Metal, both of which registered pronounced declines in response to the heightened risk-off sentiment.

The broader market also felt the heat, as the Nifty Midcap 100 slipped by 2.23% and Nifty Smallcap 100 fell by 2.73%, forming bearish candles with lower shadows that underscored the level of intraday volatility. Market breadth remained weak, with the advance–decline ratio skewed heavily towards decliners; in the Nifty 500 universe, 330 stocks ended the session in negative territory, highlighting the widespread impact of the sell-off.

Nifty View

Going ahead, the zone of 24700–24650 is expected to act as the immediate support for the Nifty index. A sustained move below 24650 may accelerate the downside momentum and open the gates for a further correction toward 24500, followed by 24350 in the short term. On the upside, the region between 24950–25000 will continue to pose a immediate hurdle.

Bank Nifty View

The banking benchmark Bank Nifty also came under significant pressure on Budget Day, witnessing a sharp decline in line with the broader market sentiment. The index slipped below both its 20-day and 50-day EMA, signalling a weakening short term trend. Intraday selling dragged the index to a low of 57783, from where it managed to stage a mild pullback. On the daily chart, Bank Nifty has formed a bearish candle with a lower shadow, highlighting heavy intraday volatility followed by marginal recovery attempts.

Going forward, the zone of 57800–57700 is expected to offer immediate support. A sustained move below 57700 may intensify the downside and pave the way for further correction toward 57200, followed by 56500 in the short term. On the upside, the 50 day EMA zone of 59000–59100 will act as a crucial resistance area.

Budget 2026 stays the course on growth while signalling fiscal prudency. The measured increase in STT on futures and options reflects a clear intent to curb excessive speculation, fostering a more stable market and encouraging sustainable participation from long-term retail and institutional investors. The continued emphasis on capex, manufacturing, services, and infrastructure provides visibility for revival of long-term private investment, particularly across MSMEs, tourism, and export-oriented sectors, which markets value more than short-term stimulus.

Equally important is policy predictability, supported by fiscal discipline, strengthening confidence across capital markets. The focus on skill creation and employability ensures growth reaches people, not just numbers. Execution will define impact. Consistent implementation can convert intent into durable, broad-based economic momentum.

The Union Budget 2026–27 reinforces India’s focus on long-term, infrastructure-led growth. Continued momentum in infrastructure spending, with a clear thrust on transport corridors, high-speed rail and digital infrastructure, is a strong positive. The extension of tax holidays for foreign companies setting up data centres is particularly constructive, strengthening India’s digital backbone and creating durable spillovers across power, telecom, real estate and IT services. This growth orientation, delivered alongside fiscal discipline, supports confidence in India’s broader macro framework.

Market unease, however, is centred on the increase in STT on F&O, particularly the sharper hike on futures. This comes on the back of higher capital gains taxes last year, raising overall transaction costs for market participants. Futures are a margined, risk-managed product and not typically the primary source of retail excess, which raises questions on whether higher STT will deliver the desired outcome or instead weigh on liquidity, participation and India’s market cost competitiveness. These concerns are being voiced by foreign investors and domestic traders, and are reflected in the immediate market reaction.

Overall, the Budget scores well on structural growth and long-term competitiveness, but near-term market sentiment is likely to remain sensitive to how higher transaction costs impact trading behaviour and capital flows.

The company sells 557,871 units in January 2026, registering a robust ~26% growth compared to 442,873 units in January 2025.

The Union Budget speech is usually short on detail with the market looking for broad signals on capex, borrowing and deficit and of course, tax. This time was no different.

The fiscal deficit for this FY (4.4%) and estimate for FY 27 (4.3%) was a good signal for the markets as also the proposed 12.2L capex (9% increase) and the palatable net borrowing number of 11.7L Cr. There was a strong reference to manufacturing, specifically Biopharma, Semiconductors, Electronics, Chemicals and Rare Earths. The Finance Minister also touched upon Infrastructure & Connectivity with a focus on Tier 2 and Tier 3 cities and increasing Nuclear Power via Small Modular Reactors.

On the tax proposals, rationalization of buyback tax and reduction in TCS for outward remittance in a couple of categories are positive moves. However, the increase in STT for futures and options put a dampener on the markets, which were expecting a friendlier tax regime.

This budget is a masterstroke for India’s digital future. The 100% tax holiday for data centers until 2047 is a '1,000-pound gorilla' move. This is similar to the 90s software boom all over again. We are already adopting AI; now we are building the 'AI Factory of the World,' firing up massive capex in power, cables, and infrastructure.

The fine print is equally vital; widening the IT services definition finally provides transfer pricing certainty for GCCs, signalling to the world that India is open for high-end tech business.

However, we must be realistic about the impact of STT on capital markets. The STT hike and the removal of dividend set-offs seem to be bringing a headwind to markets. They make many high-frequency and arbitrage trades unviable, which will squeeze market liquidity and leverage in the short term. But with a prudent 4.3% fiscal deficit and a 12.2 lakh crore capex push, the long-term earnings story remains the real hero for India.

Watch out for forthcoming monetary policy for continued credit growth of 13-15% to get nominal GDP growth of 10%+.

Budget 2026 stays the course on growth while signalling fiscal prudency. The measured increase in STT on futures and options reflects a clear intent to curb excessive speculation, fostering a more stable market and encouraging sustainable participation from long-term retail and institutional investors. The continued emphasis on capex, manufacturing, services, and infrastructure provides visibility for revival of long-term private investment, particularly across MSMEs, tourism, and export-oriented sectors, which markets value more than short-term stimulus.

Equally important is policy predictability, supported by fiscal discipline, strengthening confidence across capital markets. The focus on skill creation and employability ensures growth reaches people, not just numbers. Execution will define impact. Consistent implementation can convert intent into durable, broad-based economic momentum.

The Budget is slightly disappointing from the stock market perspective since many market participants were expecting some relief on capital gains tax, which didn’t happen. But from the medium to long-term perspective, this is a good Budget which lays out a clear strategy for growth with fiscal prudence. Nominal GDP can rise by 10% in FY 27 enabling corporate earnings to rise by around 15%, which is good from the market perspective.

Today, the Indian stock market saw a volatile session, following the Union Budget announcement. Both benchmark indices ended sharply lower after swinging between gains and losses during the day. The Sensex fell 1,546 points to close at 80,722, while the Nifty 50 declined by 1.95% to close at 24,825. The market had started on a positive note, with the Sensex rising over 450 points in early trade, but heavy selling emerged after the Budget speech.

The key reason for the market decline was the government’s decision to sharply increase the STT on derivatives trading. This led to aggressive selling in the F&O segment, which is a major driver of trading volumes. As a result, sectors like PSU banks, metals, and capital intensive stocks came under pressure. Market volatility also increased sharply, with India VIX rising 15%, indicating higher investor

nervousness.

Another concern was the government’s large borrowing plan of Rs. 17.2 lakh crore for FY27. Higher borrowing could push bond yields up, which negatively impacts banks due to losses in their bond portfolios. Additionally, the lack of any relief on capital gains tax disappointed investors.

Despite the negative market reaction, the Budget remains positive from a long term perspective. Capital expenditure has been increased to Rs. 12.2 lakh crore, with strong focus on infrastructure, defence manufacturing, semiconductors, data centres, and pharmaceuticals. Support for job creation and small businesses also strengthens the growth outlook.

Overall, the market fall appears to be a short term reaction. While near term volatility may continue, sectors linked to infrastructure, defence, railways, semiconductors, and healthcare are well placed to benefit over the medium term if execution remains strong.

India Budget 2026 reinforces the government’s commitment to continuity of reforms, policy stability and the long-term vision of Viksit Bharat. In a volatile global environment, the Budget’s biggest strength lies in its predictability—building on a decade of structural reforms rather than introducing disruptive shifts. This consistency is critical, especially as India targets sustained real GDP growth of 6.5–7% over the medium term.

Fiscal discipline remains a clear anchor. The government has reiterated its fiscal consolidation roadmap, with the fiscal deficit targeted to trend below 4.5% of GDP over the next two years, even while maintaining elevated capital expenditure. Capex continues to account for over 3.3% of GDP, creating a strong multiplier effect—every ₹1 of public capex is estimated to generate ₹2.5–3 of incremental GDP while crowding in private investment.

Manufacturing remains central to the growth strategy. PLI schemes across electronics, pharmaceuticals, chemicals and renewables are being refined to improve scale, localisation and export competitiveness. India’s manufacturing exports, currently at ~$450 billion, are targeted to cross $1 trillion by the end of the decade, positioning India as a credible alternative in global supply chains.

The Budget also strengthens traditional and indigenous sectors. Textiles, employing over 45 million people, receive continued support through cluster modernisation and export incentives. Local sectors such as Ayurveda, medicinal plants and sandalwood are being integrated into formal value chains, supported by standardisation, R&D and global certification—unlocking India’s growing share in the $500+ billion global wellness market.

A notable thrust is on Tier-2 and Tier-3 cities and the North-East. Increased infrastructure allocations, logistics corridors, MSME credit support and tourism-led development aim to decentralise growth. With nearly 60% of India’s future consumption expected to come from non-metro regions, this focus enhances both inclusivity and economic resilience.

Overall, Budget 2026 blends fiscal prudence with growth ambition—deepening manufacturing, leveraging traditional strengths and ensuring that India’s growth story is broad-based, sustainable and globally competitive.

Indian equity indices ended on a negative note in the volatile session on February 1 (Budget day) with Nifty below 24,900.

At close, the Sensex was down 1,546.84 points or 1.88 percent at 80,722.94, and the Nifty was down 495.20 points or 1.96 percent at 24,825.45. About 1673 shares advanced, 2299 shares declined, and 155 shares unchanged.

Biggest Nifty lowers included ONGC, SBI, Hindalco Industries, Adani Ports, Bharat Electronics, while gainers were Wipro, TCS, Sun Pharma, Max Healthcare, Infosys.

Nifty Midcap index fell 2.2% and smallcap indices shed 2.8%.

Among sectors, except IT, all other indices ended in the red with metal index shed 3.8%, PSU Bank declined 4%, oil & gas slipped 2.7%, Capital Goods fell 3%.

The Union Budget 2026 places strong emphasis on inclusion, ease of compliance, and grassroots economic growth. The rationalisation of income tax slabs, simplified return-filing timelines, and reduction in TDS and TCS rates will meaningfully ease the burden on middle-class taxpayers, students, and young professionals.

The introduction of a ₹10,000 crore MSME Growth Fund, revival of industrial clusters, and support for manufacturing and textile ecosystems underline the government’s commitment to scaling enterprises and job creation. These measures collectively strengthen consumption, formalisation, and long-term economic participation, aligned with the vision of Viksit Bharat.

Maintenance of fiscal discipline (4.3% deficit to GDP) remains the most comforting factor of the budget. The choice of increasing the total capex budget by nearly 22% to nearly INR 17 lakh crores ($185-190 billion) as compared to increasing the revenue expenditure by just 6.7% shows the clear focus on allocating capital to long-term growth. The new areas of focus on infrastructure were the 7 high-speed rail corridors, the east-west DFC, 20 new national waterways, and urbanization focus on city economic regions. Manufacturing related measures included focus on conventional areas, such as, chemicals, textiles, and sports goods, and sunrise sectors, such as, semiconductors, bio-pharma, rare-earths, and electronic components, and other value-unlocking measures such as REITs for CPSE real estate assets, sea plane manufacturing, container manufacturing and construction and infrastructure equipment manufacturing. The emphasis is on becoming more competitive internationally in the conventional areas, taking initiatives in the sunrise areas and unlocking value in areas where already capital and expenditure is happening but can be made more value creating.

The services sector focus was largely on healthcare, tourism and education. Health tourism is likely to get a good boost from some of these measures. Finance is what supports economic growth in the long-term. This was emphasized with a focus on a high level committee for banking sector reform, restructuring of NBFCs, such as, PFC-REC, incentives for municipal bond and corporate bond markets. Overall, the budget was focused on long-term growth and boosting infrastructure and financing for infrastructure without compromising on fiscal discipline.Sectors to watch out for are, Railways, Power, Banking, NBFCs, logistics & freight, roads, waterways, data centres and rare earths.

Studds Accessories was quoting at Rs 493.00, down Rs 8.15, or 1.63 percent.

It has touched an intraday high of Rs 503.00 and an intraday low of Rs 489.70.

It was trading with volumes of 1,625 shares, compared to its five day average of 2,855 shares, a decrease of -43.08 percent.

In the previous trading session, the share closed up 1.38 percent or Rs 6.80 at Rs 501.15.

The share touched a 52-week high of Rs 599.80 and a 52-week low of Rs 480.80 on 18 November, 2025 and 27 January, 2026, respectively.

Currently, the stock is trading 17.81 percent below its 52-week high and 2.54 percent above its 52-week low.

Market capitalisation stands at Rs 1,940.12 crore.

#1 Q3FY26 PPoP at Rs 7,380 crore (-3.7 percent YoY), broadly in-line with estimates

#2 PAT of Rs 5,050 crore (+4.5 percent YoY) beat estimates by 14 percent driven by sharply lower provisioning

#3 Credit cost declined 15 bps YoY to 25 bps

#4 Slippages moderated to 95 bps vs estimate of 100 bps

#5 Retail and agri asset quality improved, MSME saw marginal uptick QoQ

The Sensex was down 1,183.16 points or 1.44 percent at 81,086.62, and the Nifty was down 398.15 points or 1.57 percent at 24,922.50. About 1655 shares advanced, 2151 shares declined, and 139 shares unchanged.

#1 Industry outlook positive, but motorcycle-heavy mix a structural challenge

#2 3W mix and lower staff costs supported EBITDA

#3 Domestic motorcycle industry growth seen at 12–15 percent

#4 Exports expected to sustain 2 lakh+ units/month run rate

#5 EV revenue around 25 percent of domestic revenue in Q3

#6 BACL AUM at around Rs 16,000 crore

Bajaj Auto was quoting at Rs 9,504.75, down Rs 88.15, or 0.92 percent.

It has touched an intraday high of Rs 9,848 and an intraday low of Rs 9,180.75.

It was trading with volumes of 38,825 shares, compared to its five day average of 9,230 shares, an increase of 320.62 percent.

The Union Budget 2026-27 was focused on sustaining growth through capex expenditure while marginally easing on fiscal prudence path. The government has pegged the capex at Rs 12.2 lakh crore (FY27BE), implying a 11.5% YoY growth with capex to GDP ratio maintained at a healthy 3.1%. From segment perspective, Defence allocation is up 17.6%, while allocation to roads and railways segment has grown by 8.1% and 10.3% YoY. While maintaining commitment towards fiscal prudence, the Fiscal deficit was pegged at 4.3% in FY27BE vs. 4.4% in FY26RE, albeit slightly lower than market expectations of 4.2%. Total Subsidy allocation across major heads such as Fertilizer, Food and petroleum was contained at 1% of GDP (₹ 4.1 lakh crore) for FY27BE vs. 1.2% of GDP (₹ 4.3 lakh crore) in FY26RE

Most importantly, the government also focused on driving FDI by proposing a tax holiday until 2047 for foreign cloud companies that deliver services to global customers using data centre infrastructure located in India. The proposal is designed to accelerate data localisation and incentivise global cloud players to build domestic capacity

To encapsulate, given the sustained capex, overall capex-oriented sectors will continue to do well while broad market outlook will continue to track factors such as global developments, corporate earnings and domestic macroeconomic cues.

Budget 2026–27 reinforces the government’s commitment to fiscal discipline and policy continuity, steering clear of populist measures. The fiscal deficit at 4.3 percent of GDP and net market borrowing of ₹11.7 lakh crore are largely in line with expectations, offering comfort to bond markets. The higher gross borrowing target of ₹17.2 lakh crore is the key variable to watch and could keep G-sec yields under mild pressure in the near term until supply dynamics become clearer.

The budget also delivers important structural signals for fixed-income markets. The proposed market-making framework for corporate bonds is a meaningful step toward improving liquidity and price discovery, especially for retail investors. The introduction of total return swaps on corporate bonds adds depth and flexibility to the market. Incentivising large municipal bond issuances under the Amrit framework further strengthens India’s bond market ecosystem and supports long-term infrastructure financing.

#1 Q3 delivered another strong beat, volumes & mix up 16 percent YoY

#2 Sales rose 18.6 percent YoY vs estimate of 10 percent

#3 A&P spend up 42 percent YoY, operating margin down 185 bps to 21.2 percent

#4 Raw material cost stability aiding QoQ margin recovery

#5 Stock trades at around 60x FY28 EPS

Nestle India was quoting at Rs 1,293.65, down Rs 37.80, or 2.84 percent.

It has touched an intraday high of Rs 1,331.50 and an intraday low of Rs 1,266.

It was trading with volumes of 73,773 shares, compared to its five day average of 67,830 shares, an increase of 8.76 percent.

In the previous trading session, the share closed up 3.39 percent or Rs 43.70 at Rs 1,331.45.

The share touched a 52-week high of Rs 1,339.85 and a 52-week low of Rs 1,057.50 on 30 January, 2026 and 05 March, 2025, respectively.

Currently, the stock is trading 3.45 percent below its 52-week high and 22.33 percent above its 52-week low.

Market capitalisation stands at Rs 249,456.38 crore.

The increase in STT on futures and options significantly raises transaction costs for derivatives traders, particularly impacting high-frequency traders, arbitragers and Hedgers (thereby impacting their strategies). This could lead to lower derivative volumes and near-term volatility in the markets. While the move is positive from a government revenue perspective, brokerage houses may see pressure on transaction-led earnings, and markets could face some immediate downside as participants adjust to higher costs.

This Budget was never expected to be a big-bang event, given that stable policy frameworks are already being put in place. What we were looking for is continuity, which was the dominant theme. That being said, if I had to point to at least one sector that has received some positive attention, it would be defence. The budget proposals reinforce the government’s commitment to indigenisation and domestic manufacturing, which should improve order visibility and long-term earnings prospects for companies in or adjacent to the sector such as Bharat Dynamics, Bharat Forge, Mazagon Dock and Garden Reach Shipbuilders.

#1 Revenue growth trajectory remains healthy

#2 Q3 EBITDA below estimates, but growth momentum intact

#3 Pass-through of sharp commodity price hikes to support margin

#4 Valuation attractive at 26x FY28 EPS

Motherson Sumi Wiring India was quoting at Rs 42.66, down Rs 0.38, or 0.88 percent.

It has touched an intraday high of Rs 43.34 and an intraday low of Rs 42.09.

It was trading with volumes of 123,255 shares, compared to its five day average of 379,615 shares, a decrease of -67.53 percent.

TVS Motor Company  recorded monthly sales of 511,766 units in January 2026 with a growth of 29% as against 397,623 units in January 2025.

TVS Motor Company was quoting at Rs 3,626.95, down Rs 56.05, or 1.52 percent.

It has touched an intraday high of Rs 3,690 and an intraday low of Rs 3,514.80.

It was trading with volumes of 19,076 shares, compared to its five day average of 22,680 shares, a decrease of -15.89 percent.

In the previous trading session, the share closed up 0.80 percent or Rs 29.25 at Rs 3,683.

The share touched a 52-week high of Rs 3,908.95 and a 52-week low of Rs 2,191.30 on 05 January, 2026 and 28 February, 2025, respectively.

Currently, the stock is trading 7.21 percent below its 52-week high and 65.52 percent above its 52-week low.

Market capitalisation stands at Rs 172,311.72 crore.

VST Tillers Tractors was quoting at Rs 5,624.95, up Rs 90.95, or 1.64 percent.

It has touched an intraday high of Rs 5,797 and an intraday low of Rs 5,431.70.

In the previous trading session, the share closed up 0.67 percent or Rs 37.05 at Rs 5,534.

The share touched a 52-week high of Rs 6,371.15 and a 52-week low of Rs 2,875 on 01 January, 2026 and 07 April, 2025, respectively.

Currently, the stock is trading 11.71 percent below its 52-week high and 95.65 percent above its 52-week low.

Market capitalisation stands at Rs 4,861.85 crore.

The budget is very, very positive and captures many key announcements. The disinvestment target has been raised sharply to ₹80,000 crore versus ₹30,000 crore earlier. Buyback tax has been reduced and the long-pending MAT credit issue has been addressed. The increase in PMS investment limits for NRIs to 24% from 5–10% is a strong positive for capital flows. Most importantly, government capex is up 24%, which is huge, and defence spending has been increased by 21%. On top of that, tax exemptions for foreign investments in data centres till 2047 provide long-term visibility.

The announcements around ease of doing business in Income Tax and Customs should also go a long way in improving compliance and reducing friction for businesses. The only real negative in the Budget is the increase in STT on derivatives, and that’s what the market is reacting to in the short term. Overall, once the STT headline settles, the Budget should be seen as growth supportive. We would recommend a ‘Buy’.

#1 Q3 EBITDA at Rs 160 crore, beat estimates despite Rs 12 crore one-off labour code charge

#2 GMV growth remained strong at 23 percent YoY, fintech drove 20 percent revenue growth

#3 PIDF discontinuation to weigh on contribution margin, partially offset via lower opex

#4 Core business momentum & new segments support 22 percent revenue CAGR (FY26–28) with margin expansion

Markets are likely to remain volatile and largely range-bound in the near term as higher transaction costs weigh on investor sentiment, particularly in the derivatives segment. The increase in STT and F&O-related costs could dampen trading volumes, putting near-term pressure on brokerages and exchanges that are heavily dependent on market activity. This may also lead to more cautious participation from retail traders, adding to short-term uncertainty.

The broader macro picture remains supportive. The Budget strikes a careful balance between growth and fiscal discipline, reinforcing the government’s commitment to capital expenditure without compromising on consolidation. This is constructive for the medium-term outlook, especially for banks and infrastructure companies.

Capex-led growth is expected to drive sustained credit demand, improving asset quality and earnings visibility for banks. Infrastructure players should benefit from continued public spending and project execution. Overall, investors may see selective stock-specific opportunities, with a clear preference for banks and infrastructure over high-risk capital market-linked stocks in the current environment.

#1 Q3 EBITDA Rs 200 crore missed GS/consensus by 8 percent/6 percent

#2 Volume growth remained muted, flat YoY/QoQ vs GS expectation of +9 percent

#3 ASP declined 2 percent QoQ, topline weakness continues for 16th straight quarter

#4 Management indicated January growth improvement & plans to step-up A&P spends to revive volumes

The Budget sends a strong signal of policy stability while striking a pragmatic balance between fiscal discipline and growth orientation. The continued emphasis on capital expenditure, infrastructure development, and manufacturing-led growth is positive and is likely to create a strong multiplier effect across the economy. At the same time, measures aimed at strengthening domestic demand, improving ease of doing business, and maintaining fiscal prudence should support investor confidence. Overall, the Budget creates a supportive environment for both domestic and global investors and reinforces confidence in India’s medium- to long-term economic trajectory.

This budget provides a massive boost to the capital market by creating new, efficient pathways for raising capital. The ₹100 crore incentive for municipal bonds and the push for CPSEs to launch dedicated REITs show a clear strategy to unlock value from public assets. By simplifying the Foreign Exchange Management (FEMA) rules and expanding the Portfolio Investment Scheme, the government is opening the doors wide for global capital to flow into Indian companies. These reforms make it significantly easier and cheaper for both the government and private enterprises to fund their next phase of growth, ensuring that the pipeline for new listings and infrastructure projects remains robust and attractive to investors.

The introduction of a market-making framework and total return swaps for corporate bonds is a game-changer; it ensures that investors can buy and sell with much greater ease and lower costs. Additionally, turning TReDS receivables into asset-backed securities creates an entirely new category of liquid assets for the market to trade. While the adjustments in Securities Transaction Tax (STT) reflect a move toward market stability, the overall emphasis on digital integration and faster settlement processes makes our trading ecosystem more transparent and resilient. We are seeing the Indian markets evolve into a highly efficient, world-class platform.

#1 FY26 pre-sales seen exceeding guidance by 20 percent to Rs 30,000 cr+

#2 Strong housing demand & healthy launch pipeline across cities drive visibility

#3 FY27 sales could flatten without NCR township addition

#4 Large lease asset capex progressing, gearing elevated at 0.5x despite strong collections

#5 Leverage expected to stabilise with sustained residential cash flows

This is a growth-focused Budget, with strong emphasis on manufacturing, capital expenditure, and tourism to support forex inflows. The Budget also stays firmly on the path of fiscal prudence, with the glide towards a 4.4% fiscal deficit this year and 4.3% next year clearly signalling a reduction in the government’s debt and interest burden.

On the capital markets side, corporate bond market-making will help deepen the debt ecosystem, while higher investment limits for persons resident outside India should support portfolio flows and strengthen India’s long-term investment appeal. Treating buybacks as capital gains for non-promoters is positive for investors. However, a steep rise in STT on futures and options will increase impact costs and could reduce derivative volumes.

The Union Budget sends a strong and timely signal for India’s supply chain and logistics ecosystem. Measures such as recognising trusted importers within the risk management system and enabling factory-to-port clearance through electronic sealing will significantly reduce dwell time, compliance friction, and uncertainty across cargo movement. The proposed safe harbour for bonded warehousing at a competitive tax incidence of around 0.7 percent is a decisive step toward strengthening just-in-time logistics, particularly for electronics and advanced manufacturing.

Equally important is the continued policy focus on MSMEs, which nearly 70 percent of industry leaders identify as critical to India’s manufacturing ambitions. Together, these reforms will enhance supply chain efficiency, improve export competitiveness, and support India’s goal of raising manufacturing’s share of GDP toward 25 percent through faster, more resilient, and technology-led logistics networks. Overall, the Budget reinforces India’s ambition to build resilient, technology-enabled, and globally competitive supply chains

#1 DGFT introduces MIP on key antibiotics APIs

#2 MIPs aligned to FY25 import prices but 35–70 percent above current market levels

#3 Potential EBITDA uplift of Rs 450–500 crore (5–6 percent) from API price normalisation

#4 Additional Rs 150–200 crore upside possible from PLI incentives as sales ramp up

#5 Key risks remain US price erosion, pipeline execution & US FDA compliance

Aurobindo Pharma was quoting at Rs 1,197.20, down Rs 15.10, or 1.25 percent.

It has touched an intraday high of Rs 1,215.00 and an intraday low of Rs 1,172.15.

It was trading with volumes of 23,169 shares, compared to its five day average of 171,636 shares, a decrease of -86.50 percent.

In the previous trading session, the share closed up 5.37 percent or Rs 61.75 at Rs 1,212.30.

The share touched a 52-week high of Rs 1,278.00 and a 52-week low of Rs 994.35 on 24 April, 2025 and 07 April, 2025, respectively.

Currently, the stock is trading 6.32 percent below its 52-week high and 20.4 percent above its 52-week low.

Market capitalisation stands at Rs 69,533.57 crore.

The Budget takes meaningful steps toward deepening India’s debt and credit markets. Incentives for large municipal bond issuances will support urban infrastructure financing, while the proposed market-making framework for corporate bonds should improve liquidity and price discovery.

The securitisation of TReDS receivables and the SME Growth Fund together strengthen credit access for MSMEs and reinforce the shift toward market-based financing. Together, these measures strengthen debt markets, improve credit flow to productive sectors, and create a more robust framework for risk pricing and long-term capital formation.

The 2026 Budget prioritizes competitiveness over populism, aiming to sustain India's growth at 6.5–7% while attracting global manufacturing and capital investment. It marks a strategic shift from consumption-driven to investment-led expansion, while positioning India for technological, material, and financial autonomy.

From an investment perspective, this Budget presents structural opportunities for Indian equities, infrastructure, manufacturing, financials, and capital markets throughout the coming decade.

India raised taxes on some equity transactions as it seeks to boost revenue to fund increasing capital expenditure.

The government hiked the securities transaction tax on equity futures to 0.05% from 0.02%, according to the budget presented in Parliament on Sunday. The tax on options premium

and on the exercise of options has been increased to 0.15% from 0.1%.

The 3 pronged approach to create Champion MSMEs including the 10000 growth fund, incentivizing the MSME manufacturers and strong liquidity support with measures like 2000cr Self Reliant India Fund as well as the CGTMSE scheme with invoice discounting will boost the capital starved MSMEs. The proposed linking of Government e-marketplace with TReDS will help MSMEs get visibility on their payment cycles. Along with this, turning the TReDS receivables into asset‑backed securities will unlock fresh liquidity for the sector. Finally, the corporate mitra initiative to navigate the complex compliance process will help MSMEs foster growth.

Exempt basic customs duty on raw materials imported for MRO

Reduce BCD for components & parts used in manufacturing of civilian aircraft

Propose custom duty exemption on 17 drugs related to cancer

Basic customs duty exemption for specified parts used in manufacture of microwave ovens

Basic customs duty exemption for import of capital good required for processing of crucial minerals in India

The Sensex was down 847.10 points or 1.03 percent at 81,422.68, and the Nifty was down 289.25 points or 1.14 percent at 25,031.40. About 1788 shares advanced, 1836 shares declined, and 162 shares unchanged.

This budget has proposed a capital expenditure of Rs 12.10 lakh crore which is more than the net market borrowing of Rs 11.70 lakh crore.

I pray that a path is laid where one day capital expenditure will be more than the total borrowing including small savings.

The Union Budget keeps capital expenditure at the centre of the government’s economic strategy, with the outlay raised to ₹12.2 lakh crore from ₹11.21 lakh crore last year. The increase signals continuity in public investment as private capex recovery remains uneven. The budget outlines spending across transport, railways, energy and manufacturing, including proposals for high-speed rail corridors, continued support for the semiconductor mission, dedicated chemical parks and measures to secure supply chains for critical minerals. Incentives for the power sector are positioned to support rising demand from data centres and technology-led industries. Steps to recycle assets of central public sector enterprises through REITs and to strengthen the corporate bond market through a market-making framework are aimed at improving capital mobilisation and market liquidity. - Deborshi Chaki National Corporate Editor Moneycontrol

The Sensex was down 63.41 points or 0.08 percent at 82,206.37, and the Nifty was down 57.35 points or 0.23 percent at 25,263.30. About 2080 shares advanced, 1526 shares declined, and 149 shares unchanged.

FY27 total expenditure seen at Rs 53.5 lakh crore

FY27 Fiscal Deficit at 4.3% of GDP

FY26 Fiscal Deficit at 4.4% of GDP

This year's Union Budget gave a strong positive signal for the Indian clothing and apparel sector by prioritising textile cluster modernisation, large-scale skilling under Samarth 2.0, and the development of mega textile parks. These new implementations in the sector will directly benefit Indian clothing brands to improve fabric availability, production efficiency, and access to a skilled workforce.

The government’s focus on building a future-ready textile ecosystem will help Indian clothing brands scale faster, generate more employment, and strengthen their presence in both domestic and International markets.

The Budget’s allocation of Rs 20,000 crore over five years for carbon capture across power, steel, cement, refineries, and chemicals signals a clear push toward industrial decarbonisation.

This supports long-term capex and technology adoption, with potential beneficiaries including NTPC, Tata Steel, JSW Steel, UltraTech Cement, and Reliance Industries, as sustainability-linked investments gain momentum.