After a weak start, Indian equity benchmarks recovered sharply in early trade on Monday. The Sensex and the Nifty erased initial losses to move into positive territory amid mixed global cues.
Around 9:30 am, the Sensex was trading more than 250 points higher, while the Nifty was trading above the 24,830 level. Buying was seen across several sectors in early trade, helping the benchmarks recover from opening losses.
The market opened on a cautious note. The Sensex began the session 167 points lower at 80,555.68, while the Nifty 50 opened around 30 points lower at 24,796.50. Sentiment in the opening minutes remained subdued amid the post-Budget 2026 environment and prevailing global uncertainties.
The initial weakness, however, proved short-lived. Buying interest emerged soon after the open, pushing the key indices back into the green. Metal, auto, realty, PSU banking and private banking stocks saw buying interest, which supported the broader market. The Sensex climbed more than 250 points, while the Nifty stabilised above 24,830.
The increase in the securities transaction tax announced during the Budget 2026 special session on Sunday, February 1, continued to remain in focus. Following the announcement, markets had witnessed sharp selling, with both the Sensex and the Nifty falling more than 1.8 percent. This development weighed on investor sentiment at the start of Monday’s session.
In early trade, Larsen and Toubro, Asian Paints, Adani Power, Reliance Industries, Power Grid and BEL were among the top gainers on the Sensex. Shares of Larsen and Toubro and Reliance Industries rose more than 1 percent, providing support to the benchmarks.
On the downside, ITC, Infosys, Trent, Titan and Hindustan Unilever featured among the top losers. Shares of Trent, Infosys and ITC declined more than 1 percent, with weakness seen particularly in select FMCG and IT stocks.
Asian markets showed a mixed trend in early trade. Investors were awaiting private January data on China’s factory activity, which is expected to influence the near-term direction of regional markets. Gold prices continued to decline, extending the weakness seen on Friday.
At the last count, China’s CSI 300 index was trading marginally higher by 0.01 percent. Japan’s Nikkei was up around 0.75 percent, while Hong Kong’s Hang Seng index was down 1.34 percent and South Korea’s Kospi was lower by 2.63 percent.
US equities closed lower on Friday. Despite broad support from investors for US President Donald Trump’s decision to appoint Kevin Warsh as Federal Reserve chief, benchmarks ended the session in the red. The S&P 500 declined 0.43 percent, the Nasdaq fell 0.94 percent and the Dow Jones Industrial Average eased 0.36 percent.
In commodities and digital assets, investor focus remained on precious metals and cryptocurrencies amid ongoing uncertainty. Bitcoin slipped below the $80,000 mark for the first time since April, indicating a shift away from risk assets. Following sharp declines in gold and silver prices on Friday, caution prevailed in the broader market.
Several companies are scheduled to announce their Q3FY26 results on Monday, including Bajaj Housing Finance, Hyundai Motor India, Indus Towers, Mahindra Lifespace Developers, Ola Electric, PB Fintech, RailTel and Tata Chemicals. Market reaction is also expected to the results of Latent View Analytics announced on Sunday.
Stocks of cigarette and tobacco companies remained in focus after the higher excise duty on cigarettes and tobacco products came into effect from February 1. Shares of ITC, Godfrey Phillips India, Elitecon International, VST Industries and NTC Industries could see volatility.
Capital market stocks were also in focus following the increase in securities transaction tax on futures and options trades from 0.02 percent to 0.05 percent. Shares of BSE, NSDL, Groww and Angel One remained on investor radar.
Banking stocks were expected to see activity during the session. Shares of SBI, HDFC Bank and ICICI Bank were in focus after the central government set the gross market borrowing target for FY2026-27 at ₹17.2 trillion, higher than market estimates, with net borrowing fixed at ₹11.7 trillion. The announcement could have implications for bond yields and banking stocks.
