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Indian equity markets rebounded on Monday after steep losses following the Union Budget 2026, market expert Anil Singhvi said.

The BSE Sensex rose 943.52 points, or 1.17 per cent, to close at 81,666.46, while the NSE Nifty 50 gained 262.95 points, or 1.06 per cent, to 25,088.40.

Market capitalisation of the Sensex increased by Rs 4.65 lakh crore, rising from Rs 450.62 lakh crore on Budget Day, February 1, to Rs 455.27 lakh crore on Monday.

Indian markets had suffered sharp losses during the special Sunday session on Budget Day, marking the biggest Budget-day wealth erosion in five years. The steep hike in securities transaction tax on futures and options triggered heavy selling pressure.

BSE-listed companies’ total market capitalisation had fallen by Rs 9,53,926.35 crore in a single session, making Budget 2026 the most damaging since FY21.

Top gainers on the Sensex included PowerGrid (up 7.55 per cent), Adani Ports (up 4.61 per cent), BEL (up 3.75 per cent), Reliance (up 3.05 per cent) and M&M (up 2.86 per cent). Major laggards were Infosys (down 2.07 per cent) and Axis Bank (down 2.00 per cent).

Among sectoral indices, Nifty Oil & Gas rose 2.04 per cent, Nifty Auto 2.13 per cent, Nifty Metal 1.88 per cent, Nifty Realty 1.61 per cent and Nifty FMCG 1.16 per cent. IT and healthcare sectors were largely flat, with Nifty IT down 0.47 per cent and Nifty Healthcare down 0.08 per cent. Banking and financial services indices saw modest gains.

Singhvi said, “Yesterday, the market was oversold, and Nifty’s put-call ratio had fallen, which created conditions for a good recovery. Today, the market followed this script and bounced back from lower levels.”

He added that the recovery is likely to continue cautiously, with investors watching for profit booking. “If Nifty shows strength, it will indicate fresh momentum. Otherwise, some consolidation may occur,” he said.

On Bank Nifty, Singhvi noted that buying opportunities are not yet clear. “Bank Nifty needs confirmation before showing strength. Until then, investors should wait and watch.”

He also highlighted positive external factors supporting the recovery, including crude oil stabilisation, a strong rupee, and weakness in gold and silver. “Despite global weakness in metals and crude, the market showed good performance today,” he said.

Singhvi advised investors to focus on market behaviour and trade cautiously. “Nifty will lead the recovery in the short term, but Bank Nifty could regain strength over the week. Patience is key,” he added.

All major Nifty indices ended higher, led by Nifty Midcap Select 50, which rose 1.82 per cent. Nifty 50 gained 1.06 per cent to 25,088.40, while Nifty Next 50 added 1.07 per cent to 67,073.20.

Nifty Midcap 50 and Nifty Midcap 100 increased 1.22 per cent and 0.96 per cent, respectively. Smallcap indices saw moderate gains, with Nifty Smallcap 50 up 0.70 per cent and Nifty Smallcap 100 up 0.64 per cent.

Broader indices also advanced, with Nifty 100 rising 1.06 per cent, Nifty 200 up 1.04 per cent, and Nifty 500 gaining 1 per cent. Nifty Microcap 250 was mostly flat, rising just 0.14 per cent. Other indices such as Nifty LargeMidcap 250, Nifty Midcap Select, and Nifty Total Market Index were up between 0.92 per cent and 1.82 per cent.

On the NSE, a total of 3,288 stocks were traded on February 2. Of these, 1,551 advanced, 1,639 declined, and 98 remained unchanged. Thirteen stocks hit their 52-week high, while 290 touched their 52-week low. Sixty-four stocks were in the upper circuit and 128 in the lower circuit.