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Sharp recovery helps Indian markets to bounce back in green
Feb-02-2026

A sharp recovery helped Indian equity indices to bounce back in green again during early afternoon session, aided with sharp gains garnered by Power Grid and Adani Ports stocks, despite negative cues from other Asian markets. Improvement in Indian manufacturing growth also supported market sentiments. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) surged to 55.4 in January 2026 from 55.0 in December 2025, indicating a stronger improvement in the health of the sector.

Investors took a note of Fitch Ratings’ statement that the Union Budget 2026-27 signals a deliberate slowdown in fiscal consolidation, with the government opting to preserve capital spending to support growth rather than push harder on deficit reduction. 

On the global front, all Asian markets were trading lower, even as China's manufacturing activity logged a slightly faster growth in January on higher production and new orders. The survey data published by S&P Global showed that the RatingDog factory Purchasing Managers' Index rose to 50.3 in January from 50.1 in December. A score above 50.0 indicates expansion. Although the score remained close to neutral, the index signaled the fastest growth in three months.

The BSE Sensex is currently trading at 81094.66, up by 371.72 points or 0.46% after trading in a range of 80387.25 and 81211.31. There were 20 stocks advancing against 10 stocks declining on the index.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.84%, Energy up by 0.79%, Utilities up by 0.49%, Power up by 0.32% and Auto up by 0.27%, while Telecom down by 1.70%, Healthcare down by 1.43%, IT down by 1.17%, Metal down by 0.81% and TECK down by 0.78% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 3.05%, Adani Ports & SEZ up by 2.84%, Larsen & Toubro up by 2.64%, Reliance Industries up by 2.30% and Asian Paints up by 2.05%. On the flip side, Infosys down by 2.06%, Trent down by 2.02%, Titan down by 1.46%, Axis Bank down by 1.40% and TCS down by 0.86% were the top losers.

Meanwhile, IT Minister Ashwini Vaishnaw has said that he expects $200 billion investment to flow into data centres following the Union Budget proposed a 20-year tax holiday for foreign cloud service providers using data centres in India and rationalised the safe harbour framework for IT firms. The budget also includes a unified 15.5% safe harbour margin for all sub-sets of IT services and enhanced safe harbour thresholds. The long-term incentives to foreign cloud and tech giants are expected to turbocharge investments in cutting-edge data facilities and digital infrastructure.

Vaishnaw stated that this seen as bolstering India’s competitive advantage in the international AI landscape at a time when New Delhi is keen to take centre stage in global discourse on Artificial Intelligence. Meanwhile, the industry body, Nasscom highlighted that the budget makes an important intervention to strengthen India's cloud and digital infrastructure ecosystem. Besides, the 20-year tax holiday is expected to attract long-term global investment and support the expansion of India's compute capacity. 

It added that the focus on cloud infrastructure and long-term clarity for cloud services directly addresses a core constraint in scaling enterprise platforms, the ability to run regulated, data-intensive workloads with confidence and continuity. As India speeds to build digital infrastructure on a global scale, it has seen a surge of major data centre investment commitments over the past year. The tech giants like Google have pledged around $15 billion to establish an AI-ready data centre hub in Andhra Pradesh, while Microsoft is investing $17.5 billion to expand cloud and AI infrastructure in the country.

The CNX Nifty is currently trading at 24896.95, up by 71.50 points or 0.29% after trading in a range of 24679.40 and 24942.95. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Tata Motors Passenger up by 3.98%, Tata Consumer Products up by 3.19%, Power Grid up by 2.82%, Larsen & Toubro up by 2.55% and Adani Ports & SEZ up by 2.39%. On the flip side, Shriram Finance down by 4.94%, Max Healthcare Inst down by 3.14%, Cipla down by 2.12%, Trent down by 1.80% and Infosys down by 1.75% were the top losers.

All Asian markets were trading lower; Jakarta Composite plunged 446.17 points or 5.66% to 7,883.44, KOSPI dropped 274.69 points or 5.55% to 4,949.67, Hang Seng declined 839.11 points or 3.16% to 26,548.00, Shanghai Composite weakened 88.29 points or 2.19% to 4,029.66, Taiwan Weighted lost 439.72 points or 1.39% to 31,624.03, Nikkei 225 slipped 505.85 points or 0.96% to 52,817.00, and Straits Times fell 39.41 points or 0.81% to 4,865.72.
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