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The Indian stock market staged a sharp rebound in Monday’s session, February 2, recovering half of the losses from the Budget-day crash on Sunday, as strong buying activity emerged across all major sectors, especially in auto and metal counters, bringing optimism back to the Street.

Although the key averages opened the session lower, tracking losses in Asian markets, they gained momentum during the second half of the session, which persisted towards the close, leading to a 1.07% rally in the Nifty 50, settling above 25,000 at 25,091 points, while the S&P BSE Sensex closed at 81,625, up 1.12% from the previous close.

The broader markets also made a stellar rebound, with the Nifty Midcap 100 index rallying 1% and the Nifty Smallcap 100 index surging 0.70%.

In terms of sector-wise, Nifty Auto emerged as the top performer, surging 2.15%, while Nifty Oil and Gas, Nifty Realty, and Nifty Metal rallied 2%, 2%, and 1.7%. On the flip side, Nifty IT lost 0.47% of its value.

The higher-than-expected January sales reported by top OEMs have led to a recovery rally across auto stocks, while the sharp rebound in precious metals from the day’s lows also lifted sentiment in metal stocks.

Capital market-related stocks, which had their worst session on Sunday following the proposal of an STT hike, have also seen bulls return.

Meanwhile, the Indian government is reportedly considering allowing foreigners to own up to a 49% stake in its state-run banks, as policymakers seek to bolster capital at these lenders to fund growth without fully relinquishing control, Bloomberg reported.

Latent View Analytics topped the gainers’ list today, with the stock jumping 9.5% to ₹458 apiece, extending its winning run to the third straight session as investors appeared pleased with the company’s December quarter performance.

Mangalore Refinery and Petrochemicals and Sundaram Finance were among the top performers in the Nifty 500, closing 9.2% and 8.6% higher, respectively.

Power Grid Corporation shares closed 7.6% higher at ₹270.40 apiece after the company’s management raised its capex guidance for the financial year 2026. Campus Activewear shares also reacted positively to the December quarter numbers, settling 7% higher at ₹272.30 apiece.

Metal stocks, which had remained under pressure, saw renewed buying interest, with Hindustan Zinc and National Aluminium surging 7.4% and 4.5%, respectively. Premier Energies and Waaree Energies advanced 6% and 5.7%, respectively.

In the auto pack, Tata Motors led the rally, with shares spiking 5.3% to ₹363.10 apiece, while others such as JK Tyre & Industries and Motherson Sumi Wiring closed with gains of up to 3%.

Data centre stock Anant Raj, which had a massive run in the previous session, gained a further 5.2% to ₹558.90 apiece. Capital market stocks such as BSE, HDFC Asset Management, MCX, Angel One, Motilal Oswal Financial Services, and Nuvama Wealth Management all closed with gains in the range of 3% to 5%.

(more to come)

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