Mumbai, February 2, 2026
Indian equity markets are witnessing heightened volatility on Monday, February 2, 2026, as investors react to key announcements made in Budget 2026. The increase in Securities Transaction Tax (STT) on F&O (derivatives trading) has impacted overall sentiment, leading to cautious participation in index-heavy positions.
Despite this, stock-specific and sector-driven buying is visible, with select heavyweight stocks trading firmly in the green.
🏭 Reliance Industries (RIL) Gains on Green Energy Push
Shares of Reliance Industries rose nearly 2.5% after the government announced major budgetary allocations for the green energy sector.
Investors are optimistic about Reliance’s long-term growth prospects, particularly in:
Renewable energy
Green hydrogen
Energy storage solutions
The budget’s clean-energy focus has strengthened confidence in companies with large-scale transition plans.
🏦 Banking Stocks Strengthen on Fiscal Discipline Signal
Banking stocks traded higher after reports suggested the government aims to keep the fiscal deficit below 4%, reinforcing macroeconomic stability.
State Bank of India (SBI)
HDFC Bank
Both stocks were trading in positive territory, supported by expectations of:
Stable interest rates
Improved asset quality
Continued credit growth
🏗️ Larsen & Toubro (L&T) in Focus on Infra Spending
The government’s announcement of ₹11.11 lakh crore infrastructure spending in Budget 2026 has put infrastructure stocks firmly on investors’ radar.
L&T, a key beneficiary of large public capex projects, is being closely tracked for potential order inflows in:
Roads and highways
Railways
Urban infrastructure
Defense and power projects
🚬 ITC Holds Ground Despite NCCD Concerns
ITC shares remained largely stable, even as concerns emerged over a possible hike in the National Calamity Contingent Duty (NCCD) on cigarettes.
Market participants noted that:
The duty increase was lower than feared
Core FMCG and hotel businesses continue to support valuations
As a result, selling pressure remained limited.
📉 Sectoral Impact of Budget 2026
✅ Positive (Beneficiaries)
Stocks related to duty rationalization and policy support saw strong buying interest:
Mobile components manufacturers
Solar cell and renewable energy firms
Pharmaceutical companies, especially cancer-drug makers
Notable gainers include:
Sun Pharma
Tata Power
❌ Negative (Under Pressure)
Some sectors witnessed selling pressure due to taxation and regulatory concerns, including:
Telecom companies
Select foreign-invested firms affected by revised tax norms
Analysts expect continued sectoral rotation as markets digest policy changes.
📊 Market Outlook
Experts believe markets may remain range-bound in the near term, with:
Lower participation in derivatives due to higher STT
Stock-specific action driven by budget beneficiaries
Focus on earnings visibility and government capex
Investors are advised to track sectoral themes rather than broad indices in the coming sessions.
