Indian equity markets are expected to open with limited gains on Monday following the presentation of the Union Budget 2026, with weak cues from GIFT Nifty. GIFT Nifty Futures were trading around 24,873 at about 7:07 am, nearly 20 points higher than the previous close, indicating a subdued start. Mixed trends across Asia-Pacific markets may also influence domestic sentiment.
Asian markets showed divergent trends on Monday. Japan’s Nikkei 225 was trading with a marginal gain of 0.13 percent, while South Korea’s Kospi declined more than 2.5 percent. Australia’s ASX 200 closed 0.57 percent lower. Investors are tracking private data on factory activity in China, which could influence regional market direction.
Commodity markets remained under pressure, with gold prices continuing to decline. The fall in gold has weighed on investor sentiment, reflecting reduced demand for safe-haven assets, which may result in limited volatility in equity markets.
US equity markets closed lower on Friday, January 30, providing weak global cues. Selling pressure in technology stocks weighed on broader indices. The S&P 500 ended down 0.43 percent, the Nasdaq Composite declined 0.94 percent, and the Dow Jones Industrial Average slipped 0.36 percent.
Auto sector stocks are expected to be in focus during the session. Shares of Mahindra & Mahindra, TVS Motor, Hero MotoCorp, Hyundai Motor India and Ashok Leyland may see activity ahead of the release of January 2026 vehicle sales data, which will indicate performance trends for these companies.
The semiconductor and electronics manufacturing services sector is also expected to remain in focus after the Union Budget 2026 increased incentives for the semiconductor sector to Rs 40,000 crore from Rs 22,000 crore earlier. Stocks such as Kaynes Technology, Syrma SGS, Dixon Technologies, Amber Enterprises, PG Electroplast and CG Power may attract investor attention following the budget announcement.
Railway sector stocks may see action after the Union Budget 2026 allocated a record Rs 2.77 lakh crore to the railways. Companies linked to railway infrastructure, including IRFC, RVNL, IRCTC, CONCOR and Ircon, may remain in focus following the allocation.
Tobacco and cigarette stocks may witness volatility after the government increased excise duty on cigarettes and tobacco products in the budget and imposed a new cess on pan masala. These measures could impact stocks such as ITC, Godfrey Phillips and VST Industries.
Capital market-related stocks are also expected to be tracked after the government raised the Securities Transaction Tax on futures and options transactions to 0.05 percent. The move may affect companies linked to trading volumes and brokerage activity, including BSE, NSDL, Groww and Angel One.
Banking stocks are likely to be in focus as well. Shares of major lenders such as SBI, HDFC Bank and ICICI Bank may see attention after the government set a market borrowing target of Rs 17.2 lakh crore for FY27, which could influence bond yields and sector sentiment.
In company-specific developments, Shriram Finance said the Commercial Taxes Department of Tamil Nadu has imposed a penalty of Rs 46.91 lakh on the company for FY23. Blue Star reported that it detected unauthorised access to its product installation data and said it has taken necessary security measures.
Separately, Mphasis announced that senior executive Elango R has resigned from his position. Latent View Analytics reported its quarterly results, posting a 18.6 percent increase in profit to Rs 50.8 crore in Q3FY26, while revenue rose 22 percent to Rs 278 crore.
