Synopsis : Indian equity markets turned sharply volatile as investors digested the finer details of Budget 2026, triggering a broad-based sell-off across sectors. Midcap and smallcap stocks bore the brunt, while PSU banks emerged as the worst performers.
Indian stock markets erased early gains and slipped into the red on Monday as investors reacted cautiously to the fine print of Budget 2026, announced over the weekend. The initial optimism quickly faded, giving way to a broad sell-off across frontline and broader indices.
At around 11:00 AM, the BSE Sensex was trading lower by 224 points (0.28%) near 80,490, while the NSE Nifty 50 declined 109 points (0.44%) to hover around 24,716.
Within the Sensex pack, stocks such as NTPC, ITC, Bajaj Finserv, Titan Company, and Trent were among the top laggards, slipping as much as 1.8%. On the other hand, Larsen & Toubro, BEL, Adani Ports, Asian Paints, and IndiGo managed to buck the trend, gaining up to 2.5% amid selective buying.
The selling pressure was more pronounced in the broader market. The Nifty Midcap 100 index was down 1.1%, while the Nifty Smallcap 100 slumped 1.5%, highlighting a clear risk-off mood among investors.
Sectorally, all NSE indices were trading in the red, with the Nifty PSU Bank index emerging as the worst performer, plunging over 2%. Market participants remained wary after the government announced a hike in the Securities Transaction Tax (STT)—the first increase in two years—during a special Budget session held on Sunday, February 1. The announcement triggered a sharp sell-off, dragging benchmarks lower despite otherwise growth-oriented budget measures.
Adding to the volatility, investors are closely tracking the ongoing Q3 earnings season. Several companies including Bajaj Housing Finance, Hyundai Motor India, Indus Towers, Mahindra Lifespace Developers, Ola Electric, PB Fintech, Railtel, and Tata Chemicals are scheduled to announce their quarterly results today. Markets will also react to the earnings reported by Latent View Analytics, released on Sunday.
With Budget-related adjustments, earnings cues, and valuation concerns in play, analysts expect markets to remain volatile in the near term, with stock-specific action likely to dominate trading.
Disclaimer : This article is for informational purposes only and does not constitute investment advice. Market data and views are subject to change. Readers are advised to consult certified financial advisors before making any investment decisions.
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