The Union Budget is done, the headlines have been digested, and the initial market reaction has already played out. Yet, Dalal Street is far from done with Budget 2026.
As regular trading resumes, several sectors and stocks are expected to stay in focus. This is mainly because investors reassess policy signals, tax changes, and spending priorities announced by Finance Minister Nirmala Sitharaman in Parliament on Sunday (February 1).
Although many stocks reacted sharply during the special Budget trading session, the real churn may unfold over the coming days as details sink in. From textiles and defence to data centres and healthcare, Budget-linked developments are likely to shape stock-specific action in the sessions ahead.
Markets tumble in Budget special session
Indian stock markets saw a sharp sell-off during the special Budget trading session on February 1. Investors reacted negatively to announcements made by Finance Minister Nirmala Sitharaman in the Union Budget on February 1.
The BSE Sensex slipped 1,547 points, or 1.88%, to close at 80,722.94. The Nifty 50 also ended lower, falling 495 points, or 1.96%, to settle at 24,825.45. At one point during the day, the Sensex had fallen more than 2,800 points from its intraday high, while the Nifty touched a low of 24,571.75.
The sharp plunge in the domestic indices came mainly after the government announced a hike in the Securities Transaction Tax, or STT, on derivatives trading.
The sell-off erased nearly Rs 10 lakh crore of investor wealth, with the total market capitalisation of BSE-listed companies falling to around Rs 450 lakh crore from nearly Rs 460 lakh crore before the Budget session.
Stocks to watch today, February 02, 2026
Textile sector stocks
Textile stocks are expected to draw attention after the government laid out a broad policy roadmap for the sector in Budget 2026. The Finance Minister proposed a national fibre scheme and announced capital support for modern machinery.
The Budget outlined an integrated programme covering the entire textile value chain. Some of this includes initiatives such as a textile employment scheme, a national handloom and handicraft programme, the Tex-Eco initiative, and Samarth 2.0, which focuses on skill development.
Stocks like Welspun Living, Gokaldas Exports, Vardhman Textiles, Pearl Global and Trident may remain on investors radar.
MOIL
State-owned MOIL announced a price revision for manganese ore for February 2026, effective from February 1. The company raised prices of ferro grades with manganese content of 44% and above by 5%, compared to rates prevailing since January.
Prices of other ferro grades with lower manganese content were also increased by 5%, barring one specific grade where prices were kept unchanged.
Jewellery stocks
Gold-related stocks are likely to remain under scrutiny after the government chose not to alter import duty on gold in Budget 2026. With the ongoing concerns over rising gold imports and their effect on India’s trade balance, the Finance Ministry retained the existing duty structure.
Brokerage and exchange-linked stocks
Brokerage and exchange-linked stocks may also be in the spotlight today following two key tax announcements in the Budget. The government raised the Securities Transaction Tax, or STT, on futures and options trading and also changed the tax treatment of share buybacks.
Data centres and AI linked stocks
Data centre and artificial intelligence-linked stocks are expected to stay in focus after a major policy push announced in Budget 2026.
The government proposed a tax holiday until 2047 for foreign companies providing global cloud services using data centre infrastructure located in India.
Defence stocks
Defence stocks are likely to remain in the spotlight after the government allocated a record Rs 7.85 lakh crore to defence services in Budget 2026-27.
Moreover, this is the highest-ever defence outlay, with capital expenditure of Rs 2.19 lakh crore aimed at modernising the armed forces.
The allocation includes spending on fighter aircraft, helicopters, warships, submarines, artillery systems, missiles, rockets and unmanned platforms.
Electronics manufacturing stocks
Electronics stocks are expected to stay on traders radar after policy support announced in the Budget lifted sentiment across the sector. The government reiterated its focus on strengthening domestic manufacturing and supply chains.
Companies such as Kaynes Technology, PG Electroplast, CG Power and Dixon Technologies could remain in focus.
Healthcare and medical stocks
Healthcare stocks are in the focus after the Budget announced a push towards medical tourism. The Finance Minister in the Budget proposed setting up five regional medical hubs in partnership with the private sector to attract international patients.
These hubs are expected to collaborate with major hospital chains and diagnostic companies. Meanwhile. the government also plans to train 1.5 lakh caregivers nationwide. Stocks such as Aster DM Healthcare, Global Health, Dr Agarwal’s Health Care, Apollo Hospitals and Fortis Healthcare may stay in focus.
Pharmaceutical stocks, including Biocon, are expected to be watched closely after the government announced an allocation of Rs 10,000 crore under the “Biopharma Shakti” programme over the next five years.
With the Budget out of the way, the focus now shifts from headline announcements to execution, sector-level impact and company-specific implications.