Due to increase in STT in Budget 2026, the stock market had become ‘Deadly Sunday’ instead of ‘Super Sunday’ for investors. But on Monday the same stock market took a flight of relief. When the stock market closed, a rise of 950 points was seen in the Sensex. At the same time, Nifty had once again crossed the level of 25 thousand points. The special thing is that this rise in the stock market was seen around 3 o’clock and this rise continued till the market closed.
According to experts, the stock market witnessed an increase due to the rise in rupee, fall in crude oil prices, attractive figures for investors after a big fall and potential fulfillment of long term desires from the budget. Due to this rise, investors also got a profit of Rs 4.59 lakh crore.
After making a weak start due to widespread selling in the special trading session organized for the Union Budget 2026-27 on Sunday, the market later recovered losses and came into the positive zone. On February 1, the stock market fell by about 2 percent after Finance Minister Nirmala Sitharaman proposed to increase STT on derivatives.
After the initial fall at around 3 pm, vigorous buying was seen, due to which the Sensex rose by 943.52 points or 1.17 percent to reach 81,666.46. At the same time, Nifty was also trading at 25,088.40, up 262.95 points or 1.06 percent. At 9:15 am, the Nifty was down 29.90 points or 0.12 per cent at 24,796.50, while the Sensex was down 168.61 points or 0.21 per cent at 80,555.68.
Tata Motors Passenger Vehicles, Adani Ports & Special Economic Zone and Asian Paints were the top gainers in the Nifty50 pack, rising up to 2 per cent, while Shriram Finance and Max Healthcare Institute were among the major losers, falling up to 3 per cent. The market trend remained negative as around 1,282 shares advanced, 2116 shares declined and 142 shares remained unchanged. It happened. Let us also tell you what were the reasons for the rise in the stock market.
Announcements made in the budget
Investor confidence was also boosted by budget announcements focused on long-term growth. The Finance Minister announced measures to boost manufacturing, offered long-term tax incentives for global data centers and outlined support for agriculture and tourism. The Rs 53.5 lakh crore Union Budget for 2026-27 indicated continued infra spending as well as fiscal consolidation.
Ms. Bhuvaneshwari A., MD & CEO, SBI Securities. Money Control reported that the Union Budget 2026 strikes a strong balance between growth and macroeconomic stability. Due to continued fiscal consolidation, the estimated fiscal deficit has come down from 4.4 per cent for the current year to 4.3 per cent, thereby strengthening investor confidence. Investments have been announced in various emerging sectors like semiconductor, data centre, rare earth, electronics, biopharma, infrastructure, shipping and railways.
He said that on the markets front, the balanced increase in STT on futures and options is aimed at curbing excessive speculation and encouraging healthy participation in the cash market. With GDP growth forecast at 10 per cent, this budget positions India as an attractive destination for long-term investment and capital market development.
Rupee rose
A day after the presentation of the Union Budget 2026-27, on Monday the rupee strengthened by 37 paise against the US dollar and reached 91.56. The main reason for this was the fall in crude oil prices. Foreign exchange traders say that the budget has not given relief to the rupee but has given confidence. Apart from this, the government’s high borrowing plan is likely to have a negative impact on investor sentiment. The government can borrow Rs 17.2 lakh crore in the next financial year to meet the estimated fiscal deficit of 4.3 percent of the gross domestic product (GDP). In the interbank foreign exchange market, the rupee opened at 91.95 against the US dollar, then gained some strength and reached 91.56, which is 37 paise more than the previous closing price.
Fall in crude oil prices
In the international market, Brent crude oil of Gulf countries fell by 4.14 percent to US $ 66.45 per barrel. Low crude oil prices reduce inflationary pressure and improve India’s trade balance, thereby supporting stock markets. Recently, US President Trump has offered Venezuelan oil to India, the world’s third largest oil importer.
investors buying
Value based buying was seen after the huge fall in the previous session. On February 1, benchmark indices recorded their biggest percentage decline in six years in the Budget-day trading session as investors assessed the impacts of the Union Budget 2026-27.