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EQUITY
Post Session: Quick Review
Feb-02-2026

Indian equity benchmarks ended Monday’s trading session near day’s high points, rebounding after the sharp sell-off in the previous session post Union Budget 2026. Markets opened on a weak note amid disappointment over the government's budget proposal to increase taxes on equity derivatives trading. However, strong buying at lower levels helped indices to recover in the late afternoon and closed with solid gains.

Some of the important factors in trade:

HSBC India manufacturing PMI rises to 55.4 in January: Traders took support from the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI), which surged to 55.4 in January 2026 from 55.0 in December 2025, indicating a stronger improvement in the health of the sector.

India to attract $200 billion investment into data centres: Sentiments remained upbeat after IT Minister Ashwini Vaishnaw said he expects $200 billion to flow into the sector following the Union Budget, which 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..

Budget 2026-27 provides strong systemic support to India’s export ecosystem: Sentiments stayed positive as Commerce Secretary Rajesh Agrawal has said that the Budget for 2026-27 has announced a series of measures and provides strong systemic support to India’s export ecosystem by focusing on areas such as manufacturing, logistics and trade facilitation.      

On the global front, European equity markets were trading higher despite global rout in metal and energy prices weighed on commodity-related stocks. Asian markets ended lower as new tariff threats from US President Donald Trump contributed to the negative sentiment.   

The BSE Sensex ended at 81666.46, up by 943.52 points or 1.17% after trading in a range of 80387.25 and 81732.25. There were 24 stocks advancing against 6 stocks declining on the index. (Provisional)

The top gaining sectoral indices on the BSE were Utilities up by 2.66%, Power up by 2.54%, Auto up by 1.98%, Energy up by 1.98%, and Oil & Gas up by 1.92%, while IT down by 0.69%, TECK down by 0.25% and Healthcare down by 0.09% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Power Grid Corp up by 7.61%, Adani Ports and Special Economic Zone up by 4.76%, Bharat Electronics up by 3.33%, Reliance Industries up by 3.28% and Mahindra & Mahindra up by 2.86%. On the flip side, Axis Bank down by 2.00%, Infosys down by 1.85%, TCS down by 0.52%, Trent down by 0.47% and Titan Company down by 0.27% were the top losers. (Provisional)\

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 ended at 25088.40, up by 262.95 points or 1.06% after trading in a range of 24679.40 and 25108.10. There were 39 stocks advancing against 11 stocks declining on the index. (Provisional)

The top gainers on Nifty were Power Grid Corp up by 7.58%, Tata Motors Passenger up by 5.30%, Adani Ports and Special Economic Zone up by 4.33%, Tata Consumer Products up by 3.50% and Bharat Electronics up by 3.23%. On the flip side, Shriram Finance down by 3.56%, Axis Bank down by 2.16%, Max Healthcare Inst down by 1.90%, Infosys down by 1.52% and Cipla down by 1.30% were the top losers. (Provisional)

European markets were trading higher; Germany’s DAX gained 109.39 points or 0.45% to 24,648.20, UK’s FTSE 100 increased 1.66 points or 0.02% to 10,225.20, and France’s CAC rose 0.57 points or 0.01% to 8,127.10.

Asian markets settled lower on Monday tracking Wall Street’s fall last Friday after the US President Donald Trump nominated Kevin Warsh to be the next chair of the Federal Reserve, and a reading on US inflation was stronger than expected. Besides, renewed tariff worries from Donald Trump and ongoing heavy selling in metals have also dampened market sentiments. Meanwhile, investors also looked ahead to the release of key US jobs data as well as central bank decisions in Australia, Europe and London for direction. The South Korean Kospi index broke the 5,000 psychological resistance level despite global uncertainty over US monetary policy and concerns about an AI sector bubble. Japan’s Nikkei fell as investors braced for the February 8 snap lower house election and ignored the results of a private-sector survey that showed Japan's manufacturing activity grew at the fastest pace in about three and a half years in January. Conversely, export-linked shares gained after Prime Minister Sanae Takaichi said over the weekend that a weak yen could be a major opportunity for export industries. Chinese and Hong Kong shares tumbled as troubled property developer China Vanke warned of a $11.8 billion net loss for 2025 and electric vehicle giant BYD reported a 30.1% year-on-year fall in vehicle sales for January.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

4,015.75

-102.20

-2.48

Hang Seng

26,775.57

-611.54

-2.23

Jakarta Composite

7,922.73

-406.88

-4.88

KLSE Composite

--

--

--

Nikkei 225

52,655.18

-667.67

-1.25

Straits Times

4,892.27

-12.86

-0.26

KOSPI Composite

4,949.67

-274.69

-5.26

Taiwan Weighted

31,624.03

-439.72

-1.37
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