Stock Market Budget 2026 Highlights: The Indian equity markets wrapped up the special Budget Day trading session deep in the red, as investors reacted to key policy and tax announcements made during the Union Budget 2026 presentation. Selling pressure remained strong throughout the day, dragging the Sensex down by 1,546.84 points, or 1.88%, to close at 80,722.94. The Nifty also ended sharply lower, slipping 495.20 points, or 1.96%, to settle at 24,825.45.
Top 5 sectors in focus
The stock market of India is open for a special trading session today, February 1. This is because the Union Budget 2026 will be presented in the Parliament by Finance Minister Nirmala Sitharaman.
With the Finance Minister set to outline the government’s fiscal roadmap for FY27, market participants will closely track cues on fiscal targets, taxation proposals, spending priorities, and sector-specific measures.
Special trading session on Budget day, Feb 1
Both the NSE and BSE will remain open today from 9:15 am to 3:30 pm, in line with normal market hours.
Commodity exchanges, including MCX and NCDEX, will also remain open for trading. However, settlement-related restrictions apply. Shares purchased on Friday(January 30) cannot be sold today, and stocks bought during today’s session cannot be sold in the next trading session on Monday (Feb 2).
Market focus on capital gains tax
Given the recent volatility, the sharp swing in gold and silver prices and the continuous FII flows, the street will be watching out for FM’s move on capital gains taxes. There are some expectations that the tinkering done last year could be reversed incentivising long-term investors in the market.
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Stock Market Budget 2026 Announcements Highlights: Key things investors need to watch today
Share market Budget 2026 LIVE: Best and worst performing business groups
Post-Budget trading saw notable shifts in the market capitalisation of several corporate groups. On the positive side, Oswal Group gained 4.36%, Patodia Group rose 2.38%, Ruchi Group added 2.24%, and Avantha Group increased 1.59%.
On the flip side, several large groups ended in the red. IIFL Group dropped 5.02%, TSF Group fell 5.27%, Pennar Group slipped 6.5%, Vedanta Group lost 6.66%, and Muthoot Group declined 8.57%.
Share market Budget 2026 LIVE: Sectoral sell-off deepens after Budget announcements
Most sectors ended the day in the red after the Budget presentation. Engineering stocks fell 3.5%, while fertilisers declined 3.64% and tobacco stocks slipped 3.72%. Capital market shares dropped 3.77%, mining fell 3.81%, and infrastructure stocks lost nearly 4%.
Railway PSU stocks were down 4.62%, space-related stocks slid 4.97%, and PSU banks declined 5.29%. Defence stocks also fell sharply by 5.44%, shipping stocks dropped 6.03%, while non-ferrous metal stocks were the worst hit, plunging 8.16%.
Share market Budget 2026 LIVE: Samir Arora on raised STT
Markets will fall a lot more. It is not that what we expected did not come; what has come (STT Hike) was not expected, said Samir Arora, Founder of Helios Capitals.
Share market Budget 2026 LIVE: Market reaction across defence stocks
The Nifty India Defence index closed at 7,847.15, down 336.85 points or 4.12%, with selling spread across most large and mid-sized defence names.
Bharat Dynamics was the worst performer, falling 8.82% to Rs 1,401.95. Garden Reach Shipbuilders & Engineers declined 7.13% to Rs 2,568.45, while Mazagon Dock Shipbuilders dropped 6.07% to Rs 2,416.85. Paras Defence and Space Technologies slid 5.59% to Rs 672.80, and Mishra Dhatu Nigam fell 5.33% to Rs 355.80. Cochin Shipyard lost 5.23% to Rs 1,573.10, BEML declined 4.75% to Rs 1,709.70, and Data Patterns (India) slipped 4.74% to Rs 2,544.30.
Large-cap names were also under pressure. Bharat Electronics eased 4.08% to Rs 430.70, while Hindustan Aeronautics dropped 3.80% to Rs 4,442.35. Dynamatic Technologies fell 3.77%, Zen Technologies declined 2.67%, Solar Industries India lost 1.89%, Astra Microwave Products slipped 1.87%, and Cyient DLM ended 1.50% lower. MTAR Technologies was an exception, rising 2.94% to Rs 3,019.
Share market Budget 2026 LIVE: Energy stocks in focus
Oil and gas-related stocks closed higher, with Gulf Oil Lubricants India ending up 1.62% at Rs 1,107.10, Hindustan Petroleum Corporation gaining 1.04% to Rs 431.30, and Hindustan Oil Exploration Company rising 0.77% to Rs 156.55. IRM Energy finished 0.37% higher at Rs 244.70, while Confidence Petroleum India advanced 0.34% to close at Rs 32.58.
The 2026-2027 Budget emphasizes long-term energy security and transition through strategic outlays and fiscal incentives:
• Carbon Capture Outlay: The government has proposed an outlay of Rs 20,000 crore over the next 5 years to scale up Carbon Capture Utilization and Storage (CCUS) technologies in end-use applications across the power, steel, and refinery sectors.
Karanvir Singh, International Trade Economist & Economic Diplomacy Expert, Founder, Connecting Nations said, Energy and commodities are central to India’s trade and diplomatic strategy. Budget 2026 strengthens domestic capacity while maintaining India’s role as a reliable global trade partner.
The Indian equity markets ended the special Budget trading session on a weak note. The Sensex closed at 80,722.94, falling 1,546.84 points or 1.88%, while the Nifty settled at 24,825.45, down 495.20 points or 1.96%, as selling pressure persisted through the session following the Budget announcements.
Share market Budget 2026 LIVE: AI-linked stocks up
AI-linked stocks saw buying interest after the Budget announcements, with several names moving higher in the special trading session. Netweb Technologies India gained nearly 5%, while Anant Raj rose around 4.8%.
Affle India moved up close to 2.8%, supported by optimism around data-driven and AI-led services. RateGain Travel Technologies climbed about 2.5%, and Zensar Technologies advanced roughly 2.2%.
Share market Budget 2026 LIVE: Defence stocks slide
Defence stocks stayed under pressure after Budget 2026, with losses ranging from mid-single digits to nearly 9%. Data Patterns (India) slipped 5.59%, followed closely by Cochin Shipyard, which fell 5.77%, and Mazagon Dock Shipbuilders, down 5.94%. Paras Defence and Space Technologies declined 6.36%, while Garden Reach Shipbuilders & Engineers (GRSE) dropped a sharper 7.35%.
The steepest fall was seen in Bharat Dynamics, which tumbled 8.85%, marking the biggest intraday decline among defence stocks despite the Rs 7.8 lakh crore allocation in Budget 2026.
Share market Budget 2026 LIVE: Markets in red
At this hour, the Indian markets are trading lower, with the Sensex down 1.38% at 81,137 and the Nifty falling 1.51% to 24,939.
Share market Budget 2026 LIVE: Key gainers at this hour
In the ongoing intraday trade, TCS is up 2.94%, Titan has gained 2.65%, Infosys is higher by 1.34%, Sun Pharma is up 1.13%, and Tech Mahindra is marginally higher by 0.21%
Share market Budget 2026 LIVE: Brokerage stocks fall sharply on higher STT
Brokerage and commodity-related stocks came under heavy selling pressure on Sunday during intraday trade after the Union Budget 2026-27 raised the Securities Transaction Tax (STT) on commodity futures from 0.02% to 0.05%.
Shares of MCX plunged 18% in intraday trade, while Billionbrains Garage Ventures, the parent of Groww, fell 13%. IIFL Capital slipped 10%, Angel One dropped nearly 12%, and Anand Rathi Share & Stock Brokers declined 8%.
Share market Budget 2026 LIVE: Data Center and AI stocks jump after Budget boost
Data center and AI stocks climbed in special Budget trading session today after Finance Minister Nirmala Sitharaman announced a long-term tax plan to attract foreign companies to expand cloud services in India.
The move also lifted shares of firms providing energy, hardware, and infrastructure support for data centers. Anant Raj Industries rose nearly 10%, E2E Networks gained around 10%, and Netweb Technologies jumped about 6%.
Share market Budget 2026 LIVE: Markets at this hour
At this hour, the Indian stock market is trading lower, with the Sensex down 860 points, or 1.05%, at 81,409.78, while the Nifty slipped 309.75 points, or 1.22%, to 25,010.90.
Share market Budget 2026 LIVE: Paytm slips as UPI incentives cut
Shares of Paytm dropped more than 5% in the intraday trade in Sunday’s trading session after the Union Budget 2026 cut UPI incentive allocation for FY27 to Rs 2,000 crore, down from the FY26 revised estimate of Rs 2,196 crore.
Share market Budget 2026 LIVE: STT hike may slow derivatives trading
"The steep increase in STT on futures and options, coming on top of last year’s hike, is likely to raise impact costs for traders, hedgers, and arbitrageurs. This could cool derivative activity and lead to a reduction in volumes. The intent appears to be volume moderation rather than revenue maximisation, as any potential revenue gain could be offset by lower derivative volumes," said Shripal Shah, MD & CEO, Kotak Securities.
Share market Budget 2026 LIVE: Key laggards at this hour
At this hour, Sensex stocks are trading in the red, led by BEL, which is down 4.11%. Other major losers include SBIN down 3.73%, Adani Ports falling 3.11%, ITC slipping 2.89%, and Bajaj Finance declining 2.69%.
Share market Budget 2026 LIVE: Expert view
Well-known fund manager Sandip Sabharwal, writing on his platform Asksandipsabharwal.com and posting on X, shared his take on the Union Budget 2026. He said, "I don't really care about the #stt increase which was obviously avoidable. Also, there was no need for such a long winding speech. Overall, next year projections seem reasonable. Capital Expenditure increase of 10% is realistic. Buyback taxation reduction is a good positive and will lead to many buybacks from undervalued companies. Many custom simplifications as well as cut in Customs on baggage to 10% is positive. Overall neutral budget. Something should have been done to attract foreign capital; however, this random #atmanirbharat thought process and disregard for foreign capital seems to be too built up into the Government's DNA. Results season is progressing decently. StockMarket's will find their footing sooner than later."
Sabharwal highlighted that while certain measures, like the STT hike, may concern traders, other moves such as reduced buyback taxation and customs simplifications ould help support corporate activity. He added that the Budget lacked initiatives to attract foreign investment, which may continue to influence capital flows.
https://twitter.com/sandipsabharwal/status/2017860999370707131?s=20
Share market Budget 2026 LIVE: Metal, banking and energy stocks lead losses at midday
Selling pressure at midday was led by metal, banking, and energy stocks. Hindalco Industries fell 4.84% to Rs 916.05, emerging as one of the top laggards. State Bank of India declined 3.17% to Rs 1,043, while Coal India slipped 3.11%. Energy stocks such as ONGC also traded lower. Weakness was also seen in defence, auto, and financial names, keeping broader market sentiment subdued during the session.
Share market Budget 2026 LIVE: IT and healthcare stocks lead top gainers at midday
Buying interest during midday trade was concentrated in IT and healthcare stocks, even as the broader market remained under pressure. Wipro rose 4.12% to Rs 246.67, while Max Healthcare Institute gained 3.96% to Rs 994.65. Large IT names such as Tata Consultancy Services and Infosys were up 2.58% and 1.65% respectively. Strength was also seen in select pharma and consumption stocks, including Sun Pharmaceutical Industries and Titan Company, supporting gains in defensive pockets of the market.
Share market Budget 2026 LIVE: Nifty Metal down 4%
Metal stocks remained under heavy pressure in today’s session. The Nifty Metal index was down around 4%.
Among individual stocks, Vedanta slipped 3.22%, Jindal Stainless fell 3.34%, and Lloyds Metals declined 4.02%. Losses deepened in aluminium and zinc names, with Hindalco sliding 5.19%, NALCO tumbling 9.26%, and Hindustan Zinc dropping 9.83%. Hindustan Copper was the worst hit, crashing 12.48%.
Share market Budget 2026 LIVE: Focus on Competitiveness and Investment-Led Growth
Pradeep Gupta, Chairman & MD, Anand Rathi Share and Stock Brokers said, "The 2026 Budget prioritizes competitiveness over populism, aiming to sustain India's growth at 6.5–7% while attracting global manufacturing and capital investment. It marks a strategic shift from consumption-driven to investment-led expansion, while positioning India for technological, material, and financial autonomy. From an investment perspective, this Budget presents structural opportunities for Indian equities, infrastructure, manufacturing, financials, and capital markets throughout the coming decade."
Capital market stocks showed mixed movement after Budget 2026–27 announcements directly affected transaction costs, taxation, and investment rules. Stocks linked to trading and exchanges remained under pressure, with Multi Commodity Exchange of India sliding 10.80% to Rs 2,252.35 and Angel One falling 5.54% to Rs 2,398. Nuvama Wealth Management dropped 3.33%, while Nippon Life India Asset Management declined 2.92%.
Selective buying was seen in some names. Motilal Oswal Financial Services rose 1.64% to Rs 764.20 and Anand Rathi Wealth gained 1.45% to Rs 2,924.40. The moves followed higher STT on derivatives, changes to buyback taxation, MAT revisions, expanded foreign investment limits, and plans to restructure Power Finance Corporation and Rural Electrification Corporation.
Share market Budget 2026 LIVE: Nifty and Sensex recover from lows but remain sharply lower after STT hike
Benchmark indices pared losses in midday trade but continued to remain deep in the red after the Finance Minister announced a hike in Securities Transaction Tax on derivatives. Nifty 50 was trading at 24,987.25, down 431.65 points or 1.70%, while the Sensex stood at 81,417.93, lower by 1,148.44 points or 1.39%.
Markets had earlier seen a sharp sell-off after STT on futures was raised from 0.02% to 0.05% and on options premiums from 0.10% to 0.15%. The Sensex had plunged over 2,000 points, or nearly 3%, before recovering part of the losses, while Nifty had slipped below the 24,900 mark during the session.
Share market Budget 2026 LIVE: Pharma and Healthcare stocks largely buck the bloodbath.
Pharma and healthcare stocks were among the key gainers at midday, bucking the broader market sell-off after the Budget announcement. Vimta Labs surged 8.70% to Rs 447.15 by early afternoon, while Sun Pharma Advanced Research Company rose 6.45% to Rs 134.45. Neuland Laboratories gained 4.81% to Rs 13,880, and Global Health advanced 4.80% to Rs 1,105.65.
Hospital and healthcare service stocks also traded higher at midday. Max Healthcare Institute was up 2.51% at Rs 981.10, while Healthcare Global Enterprises and Yatharth Hospital added over 2% each. Buying interest in select pharma and diagnostics stocks contrasted with the broader market weakness.
Non-ferrous metal stocks saw sharp losses, led by aluminium, zinc, and copper names. Hindustan Copper dropped 12.61% to Rs 600, while Hindustan Zinc fell 10.13% to Rs 565.15. National Aluminium Company declined 9.15% to Rs 349.50, and Hindalco Industries slipped 5% to Rs 914.
Defence stocks also remained under pressure, extending losses across the segment. Bharat Electronics fell 7.41% to Rs 415.75, Bharat Dynamics dropped 7.97% to Rs 1,415, and Garden Reach Shipbuilders declined 6.37% to Rs 2,589.50. Hindustan Aeronautics was down 5.58% at Rs 4,360.35.
Railway-linked stocks traded weaker as well. Bharat Heavy Electricals declined 4.07% to Rs 252.15, IRFC fell 2.95% to Rs 116.60, and IRCTC slipped 1.64% to Rs 612.85. Rites and Ircon International also traded lower.
Share market Budget 2026 LIVE: Sectors losing the most today - non-ferrous metals, defence, railways
Non-ferrous metal stocks saw sharp losses, led by aluminium, zinc, and copper names. Hindustan Copper dropped 12.61% to Rs 600, while Hindustan Zinc fell 10.13% to Rs 565.15. National Aluminium Company declined 9.15% to Rs 349.50, and Hindalco Industries slipped 5% to Rs 914.
Defence stocks also remained under pressure, extending losses across the segment. Bharat Electronics fell 7.41% to Rs 415.75, Bharat Dynamics dropped 7.97% to Rs 1,415, and Garden Reach Shipbuilders declined 6.37% to Rs 2,589.50. Hindustan Aeronautics was down 5.58% at Rs 4,360.35.
Railway-linked stocks traded weaker as well. Bharat Heavy Electricals declined 4.07% to Rs 252.15, IRFC fell 2.95% to Rs 116.60, and IRCTC slipped 1.64% to Rs 612.85. Rites and Ircon International also traded lower.
hare market Budget 2026 LIVE: Markets slide sharply after Budget speech ends
Indian stock markets saw a sharp fall after Finance Minister Nirmala Sitharaman wrapped up her Budget speech. The Sensex had dropped nearly 1,650 points to 80,619, while the Nifty50 was down about 482 points, trading close to 24,839. Heavy selling across sectors dragged the benchmarks lower as investors reacted to Budget announcements.
Share market Budget 2026 LIVE: Key sectoral indices in red
Most sectoral indices were trading in the red as selling pressure widened across the market during the Budget session.
The Nifty Metal index was the worst hit, down around 3.6%, followed by Nifty PSU Bank, which slipped over 4.3%. Other sectors also saw declines, with Nifty Financial Services down about 1.3%, Nifty FMCG lower by 1.1%, Nifty Media falling 1.3%, and Nifty Realty down around 1.4%.
Auto, IT, Consumer Durables and Pharma indices also traded lower, slipping between 0.2% and 1%.
Share market Budget 2026 LIVE: STT increased
"I propose to raise the stt on futures to 0.05% from the present. 0.02%, stt on options, premium and exercise of options are both proposed to be raised to 0.15% from the present rate of 0.1% and 0.125% respectively," said FM Sitharaman
Share market Budget 2026 LIVE: Sensex slides over 1.40% after budget presentation
The BSE Sensex dropped 1,155.83 points, or 1.40%, to 81,410.54 in midday trade on February 1 after the Union Budget was announced.