Markets Recover Post-Budget Selloff; Nifty Gains 0.3%, Sensex Jumps 372 Pts

The benchmark Nifty 50 index opened at 24,796.50, down by 28.95 points or 0.12 per cent, while the BSE Sensex opened at 80,555.68, slipping 167.26 points or 0.21 per cent. However, the indices soon pared losses, with the Nifty gaining 0.3 per cent in the early trading session, while the Sensex jumped 372 points.

Market participants remained cautious following the sharp reaction seen after the Budget, but selective buying helped the benchmarks recover from the opening lows.

Ajay Bagga, Banking and Market Expert, told ANI on market outlook, "We expect some more selling and there will be selling at every rise. There is time till April 1st for the higher taxes to come in. There are many positives in the Budget. That should help Indian markets which are in heavy oversold zone. The Union Budget 2026 reflects a strategic shift from short-term stimulus to long-term structural resilience. It balances fiscal discipline with a targeted push for manufacturing and the services sector. Positives are fiscal discipline, higher tax revenues and sectoral beneficiaries will generate growth".

Data on fund flows on budget day showed continued selling pressure, with foreign institutional investors (FIIs) selling equities worth Rs 588.3 crore, while domestic institutional investors (DIIs) also remained net sellers to the tune of Rs 682.7 crore.

In the broader market, performance remained mixed. On the NSE, the Nifty 100 rose by 0.13 per cent, while the Nifty Midcap 100 slipped 0.21 per cent and the Nifty Smallcap 100 declined 0.49 per cent.

Sectoral indices on the NSE also showed a mixed trend. Nifty Auto was down 0.11 per cent, Nifty FMCG fell 0.61 per cent, Nifty IT declined 0.59 per cent, Nifty Media lost 0.40 per cent, and Nifty Pharma was down 0.5 per cent. Meanwhile, Nifty Oil & Gas and Nifty Metal opened in the green, providing some support to the broader market.

Gold prices continued their downward trend on the MCX, trading at Rs 143,321 per 10 grams, down 3 per cent.

Ponmudi R, CEO of Enrich Money, said, "Indian markets may remain under pressure following the sharp negative reaction to the Union Budget 2026-27, triggered by a surprise hike in the Securities Transaction Tax (STT) on derivatives. Futures STT has been raised to 0.05 per cent from 0.02 per cent, while options STT has been increased to 0.15 per cent from 0.10 per cent/0.125 per cent, significantly raising trading costs and weighing on F&O-heavy stocks and brokerage counters. While DII buying could offer some support, near-term sentiment remains cautious to mildly bearish".

In other Asian markets, sentiment remained weak. Japan's Nikkei 225 index was down 0.81 per cent, Singapore's Straits Times fell 0.34 per cent, Taiwan's weighted index declined 2 per cent, and Hong Kong's Hang Seng index was down 2.4 per cent.

- ANI