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Sensex Soars 944 Points in Dramatic Rebound After Budget-Day Plunge

Indian equity markets staged a powerful recovery on Monday, with the Sensex surging 944 points to close at 81,666 after a sharp Budget-day fall. The Nifty also gained over 1%, climbing back above the 25,000 mark in a volatile trading session. The rally was broad-based, led by Power Grid and supported by heavyweights like Adani Ports, ICICI Bank, and L&T, while most sectoral indices ended in the green. The market's fear gauge, India VIX, cooled off significantly, dropping 8% during the session.

Key Points: Sensex, Nifty Rebound Sharply After Budget-Day Market Rout

  • Sensex recovers 944 points
  • Nifty gains 1.06%
  • Power Grid top gainer, up 7.6%
  • Broad-based rally across sectors
  • India VIX fear gauge falls 8%
2 min read

Sensex, Nifty rebound sharply after Budget-Day rout

Indian stock markets stage a strong recovery with Sensex jumping 944 points. Power Grid leads gains as broad-based rally lifts indices.

"The rebound came a day after markets suffered their sharpest Budget-day fall since February 2020."

Mumbai, Feb 2

Indian equity markets bounced back strongly in the final hour of trade on Monday, helped by late buying in heavyweight stocks such as Adani Ports, Bharat Electronics, L& Mahindra & Mahindra, ICICI Bank and HDFC Bank.

The Sensex recovered sharply from its intra-day low of 80,387.25. It jumped as much as 1,345 points to touch a high of 81,732 before closing at 81,666. The index ended the day up 944 points, or 1.17 per cent.

Similarly, the Nifty moved in a wide range during the day. After hitting a low of 24,679, the index climbed to 25,108 and finally settled at 25,088, gaining 263 points or 1.06 per cent.

The rebound came a day after markets suffered their sharpest Budget-day fall since February 2020. The recovery was broad-based, with midcap and smallcap stocks also ending higher.

The improvement in sentiment was reflected in the India VIX, the market's fear gauge, which slipped 8 per cent during the session.

Power Grid emerged as the top gainer on the Sensex, rising 7.6 per cent. The stock rallied after the company's management said its capital expenditure and capitalisation plans for FY26 were on track and that it was confident of exceeding its annual guidance.

Other major gainers included Adani Ports, Bharat Electronics, M&M, L&T, IndiGo, UltraTech Cement, Asian Paints, ITC, Bajaj Finserv, Tata Steel, ICICI Bank, NTPC, Maruti Suzuki and SBI. These stocks gained up to 4.6 per cent.

On the losing side, only six Sensex stocks closed in the red. Axis Bank, Infosys, TCS, Trent, Titan and Kotak Mahindra Bank ended lower.

The broader markets also supported the rally. The Nifty Midcap index rose 0.9 per cent, while the Nifty Smallcap index gained 0.6 per cent.

Sector-wise, most indices ended in positive territory. The Nifty Auto index climbed 2.14 per cent, followed by the Nifty Metal index, which gained 1.8 per cent, and the Nifty Realty index, up 1.6 per cent. The Nifty IT index was the only sectoral loser, slipping 0.5 per cent.

In the commodity market, precious metals continued to remain under pressure. MCX Silver futures fell sharply by 6.4 per cent to close at Rs 2,48,600 per kilogram.

Gold prices, however, recovered from the day's lows, with MCX Gold futures ending nearly flat, down 0.1 per cent at Rs 1,47,600 per 10 grams.

- IANS

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Reader Comments

P
Priya S
Phew! My SIPs can breathe again. The VIX dropping 8% shows the fear is subsiding. But honestly, this volatility is not for the faint-hearted. Need to see if this rally sustains or if it's just a dead cat bounce.
R
Rohit P
Auto and Metal sectors up, IT down. Clearly shows where the money is moving post-budget. The focus on manufacturing and infra is paying off. Good time to rebalance the portfolio.
S
Sarah B
As an NRI investor, this rebound is reassuring. However, the sharp fall in silver is concerning for commodity holders. The market seems to be rewarding specific capex-heavy companies like Power Grid, which is a positive signal.
V
Vikram M
Bhai, 1300 point swing in Sensex! Kya roller coaster hai. But good that banks and heavyweights like L&T and M&M pulled it back. Small retail investors like me were sweating yesterday.
K
Karthik V
While the recovery is impressive, let's not forget the rout happened in the first place. The market's over-reliance on a handful of stocks for recovery is a structural weakness that needs addressing. Healthy growth should be more broad-based.
A
Ananya R
Midcap and smallcap

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