Did Sensex and Nifty Stage a Strong Recovery After Budget-Day Decline?
Synopsis
After a significant downturn on Budget Day, the Indian stock market made a stunning recovery, driven by strong performances from heavyweight stocks. This article dives into the factors behind the market rebound and highlights key gains across sectors.
Key Takeaways
Sensex surged by 944 points to close at 81,666 .
Nifty gained 263 points , settling at 25,088 .
Power Grid was the top gainer with a 7.6 percent increase.
Investor sentiment improved, with the India VIX dropping by 8 percent .
Overall market recovery included midcap and smallcap stocks.
Mumbai, Feb 2 (NationPress) The Indian equity markets made a remarkable comeback in the last hour of trading on Monday, driven by late purchasing in major stocks such as Adani Ports, Bharat Electronics, L&T, Mahindra & Mahindra, ICICI Bank, and HDFC Bank.
The Sensex surged back from its intra-day low of 80,387.25, soaring by as much as 1,345 points to reach a peak of 81,732 before ending at 81,666. It concluded the day with a gain of 944 points, equivalent to 1.17 percent.
In the same vein, the Nifty experienced significant fluctuations throughout the day. After touching a low of 24,679, it rebounded to 25,108 and ultimately closed at 25,088, reflecting a rise of 263 points or 1.06 percent.
This recovery occurred following the most substantial Budget-day decline since February 2020. The upswing was widespread, with midcap and smallcap stocks also posting gains.
Investor sentiment improved, as evidenced by the India VIX, the market’s volatility index, which decreased by 8 percent during the session.
Power Grid stood out as the top performer on the Sensex, climbing by 7.6 percent after the management announced that its capital expenditure and capitalisation strategies for FY26 are on schedule and that they expect to surpass their yearly targets.
Other significant gainers included Adani Ports, Bharat Electronics, M&M, L&T, IndiGo, UltraTech Cement, Asian Paints, ITC, Bajaj Finserv, Tata Steel, ICICI Bank, NTPC, Maruti Suzuki, and SBI, with these stocks rising by as much as 4.6 percent.
On the downside, only six stocks on the Sensex closed in the negative. Axis Bank, Infosys, TCS, Trent, Titan, and Kotak Mahindra Bank saw declines.
The broader markets contributed to the rally as well, with the Nifty Midcap index increasing by 0.9 percent, and the Nifty Smallcap index rising by 0.6 percent.
From a sector perspective, most indices finished in positive territory. The Nifty Auto index surged by 2.14 percent, followed by the Nifty Metal index with a gain of 1.8 percent, and the Nifty Realty index, which rose by 1.6 percent. The Nifty IT index was the lone sectoral decliner, dropping by 0.5 percent.
In the commodities market, precious metals remained under pressure, with MCX Silver futures plummeting by 6.4 percent to settle at ₹2,48,600 per kilogram.
Conversely, Gold prices rebounded from the day's lows, with MCX Gold futures finishing nearly flat, down by 0.1 percent at ₹1,47,600 per 10 grams.
Point of View
I recognize the resilience of the Indian equity markets in the face of volatility. This recovery is a positive sign for investors and reflects an underlying strength in key sectors. By staying informed and adaptable, we can navigate these market fluctuations successfully.
NationPress
20 Jun 2026
Frequently Asked Questions
What caused the recovery in the Indian stock market?
The recovery was primarily driven by late buying in heavyweight stocks, following a significant drop on Budget Day.
Which stocks were the biggest gainers?
Major gainers included Power Grid, Adani Ports, Bharat Electronics, and ICICI Bank, among others.
How did the broader market perform?
The broader markets also contributed positively, with the Nifty Midcap index rising by 0.9 percent and the Nifty Smallcap index gaining 0.6 percent.
What sectors saw notable gains?
The Nifty Auto, Metal, and Realty indices showed significant growth, while the Nifty IT index was the only sector to decline.
What is the outlook for precious metals?
Precious metals, particularly silver, faced pressure, while gold prices showed signs of recovery.
