SENSEX surges over 900 points, NIFTY50 reclaims 25,000 as markets give thumbs up to higher capex spending in Budget 2026-27

The Indian equity benchmarks staged a strong bounce back on Monday, February 2, as investors looked beyond hike in Securities Transaction Tax (STT) announced in Budget 2026-27 on Sunday and gave a thumbs up to higher capital expenditure spending for the upcoming fiscal year, analysts said.

The SENSEX rose as much as 1,009 points and NIFTY50 index touched an intraday high of 25,108 led by gains in index heavyweights like Reliance Industries, ICICI Bank, Larsen & Toubro, HDFC Bank, Power Grid, Mahindra & Mahindra and Bharat Electronics.

The SENSEX rose 944 points to close at 81,666 and NIFTY50 index advanced 263 points to settle at 25,088.

Global investment banks have given a thumbs up to the proposals announced in the Union Budget 2026-27 presented by Finance Minister Nirmala Sitharaman on Sunday, February 1. While they have hailed government's focus on capital expenditure and manufacturing, but they have raised a red flag over higher than anticipated gross borrowings.

Finance Minister on Sunday while announcing Budget for 2026-27 increased the capital expenditure to ₹12.2 lakh crore from ₹11.11 lakh crore and pegged fiscal deficit at 4.3% of GDP in FY27, lower than 4.4% in FY26.

Global investment bank Jefferies in a note said that FY27 Budget has moderated fiscal deficit reduction, implying higher government spending. Government's focus on ease of doing business is visible for global capability centres (GCCs) and other corporate and individual taxpayers.

Sectoral landscape

Buying was visible across sectors as all the major sector gauges compiled by the National Stock Exchange ended higher led by the NIFTY Auto index's over 2% gain. NIFTY Metal, FMCG, PSU Bank, Realty, Oil & Gas and Infrastructure indices also rose between 1%-2.3%.

On the flipside, information technology and select healthcare shares faced a mild selling pressure.

Broader markets also witnessed buying interest as NIFTY Midcap 100 index rose 1% and NIFTY Smallcap 100 index advanced 0.64%.

Among the individual shares, Latent View Analytics shares rose as much as 9.53%, its biggest single-day gain since March 28, 2024, to hit an intraday high of ₹458 on the National Stock Exchange (NSE). On the BSE, Latent View Analytics shares climbed as much as 9.5% amid spike in trading activity.

Latent View Analytics on Monday reported net profit of ₹50 crore in the third quarter of current financial (Q3FY26), marking an increase of 19% from₹42 crore in the same period last year.

NIFTY50 gainers and losers

Power Grid was top gainer in the NIFTY50 index, the stock rose 7.42% close at ₹270. Tata Motors PV, Adani Ports, Bharat Electronics, Hindalco, Reliance Industries, Mahindra & Mahindra and Adani Enterprises also rose between 2.7%-5.61%.

On the flipside, Shriram Finance, Axis Bank, Max Healthcare, Infosys, TCS and Cipla were among the notable laggards in the NIFTY50 index.

The overall market breadth was neutral as 1,639 shares ended lower while 1,551 closed higher on the NSE.