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Mumbai, 2 February. The Indian stock market opened in the red amid mixed global cues in Monday’s trading session, the day after the presentation of the Union Budget 2026-27. During this period, the major indices of the domestic market, Sensex and Nifty, started trading with a decline. BSE Sensex opened 167.26 points or 0.21 per cent lower at 80,555.68, while NSE Nifty50 opened 28.95 points or 0.12 per cent lower at 24,796.50.

However, after a few minutes the market came into the green. Till the time of writing the news (around 9.34 am), the 30-share BSE Sensex was at 81,054.61 with a rise of 331.67 points or 0.41 percent, while the NSE Nifty was at 24,898.25 with a rise of 72.80 points or 0.29 percent. Talking about the broader market, Nifty Midcap 100 index saw a decline of 0.30 percent and Nifty Smallcap 100 index saw a decline of 0.41 percent in early trade.

Whereas in various sectors, except Nifty Metal and Nifty Oil & Gas, all other sectoral indices were in the red. NTPC, ITC, Bajaj Finserv, Titan and Trent were among the top losers in the Sensex pack during early trade, falling up to 1.79 per cent. While Larsen & Toubro, BEL, Adani Ports, Asian Paints and Indigo were the top gainers with gains of up to 2.5 percent.

Presenting the Union Budget 2026-27, the third of the Modi government’s third term and her ninth consecutive one, on Sunday, February 1, Finance Minister Nirmala Sitharaman announced an increase in the Securities Transaction Tax (STT) on Futures and Options (F&O) and increased the STT on futures to 0.05 per cent. So at the same time, STT on options premium was increased from 0.10 percent to 0.15 percent.

After this big announcement, there was a big fall in the domestic market and major benchmarks Sensex and Nifty collapsed. During trading, the Sensex at one time reached a low of 79,899.42 and saw an intraday fall of about 3,000 points. At the same time, Nifty50 also slipped to 24,572.

Akash Shah, Technical Research Analyst, Choice Broking, said that in the last trading session, Nifty has formed a strong bearish candle and it closed below the 200-day EMA, which indicates weakening of the trend. At present, there is strong resistance between 24,950-25,000, while the level of 24,650-24,700 is considered important support. The RSI has dropped to 31, which shows oversold conditions.

At the same time, India VIX increased by 10.73 percent and reached 15.09, which clearly shows the increased nervousness in the market. The expert further said that in view of global uncertainties and increasing volatility, investors and traders are advised to adopt a selective and disciplined strategy at present. During the downturn, keep an eye on stocks with strong fundamentals. It would be better to create new long positions only after a strong and sustainable breakout in Nifty above 25,000, as this level will indicate a real improvement in market sentiment.