The Economic Times

The rebound came despite proposals to raise transaction taxes on derivatives and the absence of fresh measures aimed at drawing foreign investment. The BSE Sensex rose 943.5 points, or 1.17%, to close at 81,666.46, while the Nifty 50 advanced 261 points, or 1.06%, to 25,088.4.

Power Grid shares saw a sharp surge on Monday after the PSU raised its FY26 capex guidance to Rs 32,000 crore and increased capitalisation targets, signalling strong execution visibility. The company posted an 8% YoY rise in Q3 net profit to Rs 4,185 crore, with revenue up 10% and expenses moderating sequentially.

Zerodha founder Nithin Kamath criticised the STT hike on equity derivatives, saying it wont curb speculation as most activity is in options. He warned higher taxes could hurt futures volumes, liquidity and price discovery, and suggested suitability norms as a better solution.

Union Budget 2026 outlines a confident and fiscally disciplined growth roadmap, with emphasis on sunrise sectors, infrastructure, digital capacity and inclusive development. The Budget aims to deepen capital markets, strengthen manufacturing, empower women entrepreneurs and improve urban funding, while maintaining macroeconomic stability and supporting long term, resilient growth.

Gold and silver prices extended a sharp correction after a speculative, momentum-driven rally, pressured by profit-taking, a stronger dollar, rising US yields and higher global margins. Analysts say the broader trend remains bullish, with current declines seen as consolidation rather than reversal, offering selective accumulation opportunities amid near-term volatility.

Sovereign Gold Bond prices plunged on the NSE after the government withdrew capital gains tax exemption for bonds bought in the secondary market. The Budget 2026 move restricts tax-free gains only to original RBI subscribers holding SGBs till maturity, triggering sharp selloffs across multiple bond series and raising concerns among retail investors.

Hyundai Motor Q3 Results: Auto major Hyundai Motor India reported a 6.3% YoY jump in its December quarter consolidated net profit at Rs 1,234 crore compared to Rs 1,161 crore reported in the year ago period.

Hyderabad-based Marri Retail has filed its DRHP with Sebi for an IPO comprising a Rs 522-crore fresh issue and a promoter OFS. The company plans to use the proceeds for debt reduction, new store expansion and capex. Marri Retail currently operates 34 stores across four states under multiple apparel and jewellery brands.

Safe-haven euro zone government bond yields were steady on Monday as a rout in precious metals gripped markets at the start of a week that will also see an interest rate decision from the European Central Bank. Silver and gold extended last week's declines, sliding around 10% and 6%, respectively, prompting investors to sell other assets like stocks to cover losses.

Veteran investor Raamdeo Agrawal warns that recent derivatives trading cost hikes may reduce strategy profitability and temporarily impact market liquidity. While the budget is praised, the timing of these increased costs adds to market jitters amid moderating earnings growth and global uncertainties. Agrawal believes strong earnings will ultimately drive market direction.

FIIs reversed their two-quarter selling streak by raising stakes in several beaten-down smallcap stocks, signalling renewed confidence despite sharp one-year declines.

SBI Securities has identified five stocks that could benefit from the capex focused Union Budget 2026, which raised government spending to Rs 12.2 lakh crore. The brokerage sees upside of up to 17%, driven by infrastructure push, banking growth and global demand trends.

Raamdeo Agrawal hails the government's 100% tax holiday for data centres until 2047 as a ransformational policy. This move is expected to significantly boost India's participation in the global AI infrastructure race, leveraging cost advantages.

Bitcoin fell below $76,000 and Ethereum hovered near $2,200 as nearly $2 billion in liquidations triggered a broad crypto selloff. Major altcoins slid sharply, global market cap dropped over 4%, and analysts warned that thin liquidity, ETF outflows and rising macro risks could keep crypto markets volatile.

Gold, silver and equities tumbled together in a rare cross-asset slide, with leveraged unwinding, a stronger dollar and expectations around Kevin Warshs Fed outlook triggering a sharp selloff. Analysts warn against chasing rallies, suggesting disciplined asset allocation as precious metals consolidate and large-cap equities offer relatively steadier opportunities.

Budget 2026 brings significant changes for Indians with overseas financial links. Remittances for education and medical treatment abroad will see a reduced tax collected at source. Leisure travellers also stand to benefit from lower upfront costs. Customs duty on electronics is proposed to be halved. Share buyback income is proposed to be taxed as capital gains.

Union Budget 2026 steered clear of headline-grabbing announcements because major reforms are already underway and will continue outside the annual Budget framework, the governments top economic adviser said, pushing back against criticism that the exercise lacked ambition.

India's Union Budget prioritizes continuity amid global uncertainty, with fiscal discipline largely achieved. While borrowing targets raise concerns, the focus shifts to proactive liquidity management to ensure fiscal discipline translates into lower borrowing costs and supports economic growth.

The US-India Strategic Partnership Forum has welcomed the Union Budget. It highlights the budget's focus on technology-driven reforms and trade facilitation. This makes India more attractive to global investors. Key sectors like semiconductors and AI will see support. Customs and tax reforms aim to boost competitiveness and ease of doing business.

Bitcoin slid to a 10 month low in Asian trading as market sentiment weakened amid broader asset volatility. The cryptocurrency has logged four consecutive monthly declines, its longest losing streak since 2018, with investors rattled by global market turmoil and shifting US monetary policy expectations.

India's budget received cautious optimism, but reversing foreign investor outflows remains uncertain. While capital expenditure plans align with expectations, higher taxation on derivatives and a significant premium over other emerging markets deter FIIs. Analysts suggest sustained earnings growth and valuation corrections are needed to attract renewed foreign interest.

The Union Budget 2026-27 focuses on fortifying the Indian economy against global volatility through strategic investments in technology, healthcare, and grassroots entrepreneurship. Industry experts hail the government for their push for strengthening the country's biopharma sector, as well as their focus on women entrepreneurship.

The Union government faces a careful balancing act. Significant funds will flow to states following the 16th Finance Commission's proposals. This includes a 41 percent share of central taxes and doubled grants for local bodies. Expenditure Secretary V. Vualnam highlighted the need for fiscal prudence.

Prashant Jain said Union Budget 202627 ticks all the right boxes and offers a reasonable investment opportunity over the next three to four months despite market volatility. He believes large-cap stocks are fairly valued, long-term returns should track nominal GDP growth, and policy stability and fiscal discipline support sustained economic expansion.

Temasek Holdings and Life Insurance Corporation of India are poised to be major sellers in the National Stock Exchange of India's potential $2.5 billion IPO. State Bank of India and SBI Capital Markets are also expected to participate in the offering, which will consist of existing shareholders selling 4% to 4.5% of the company's equity.

Union Budget 2026: some measures make high-value imports and essential items cheaper, others add incremental costs that consumers will feel over time.

Indian IT firms are likely to favor share buybacks over dividends following recent tax reforms. Market expert Sushovan Nayak believes the new rules make buybacks more tax-efficient for both companies and many shareholders. This shift is expected to encourage cash-rich IT giants like Wipro, LTIM, and TCS to continue returning capital to investors through buybacks in the coming period.

Latent View Analytics shares jumped nearly 8% after the company posted a 19% year-on-year rise in Q3FY26 profit and strong revenue growth. Improved margins, new client additions and rising institutional participation supported sentiment, while management reiterated focus on scaling AI and Agentic AI capabilities.

Despite a sharp post-Budget market sell-off, brokerages remain bullish on structurally strong themes ranging from defence and infrastructure to data centres, EVs and rare earths. With capital expenditure rising and policy continuity intact, analysts have identified 35 stocks positioned to benefit from Indias long-term growth strategy.

Indias defence stocks enter a volatile phase despite a 22% jump in Budget capex, as valuations run ahead of fundamentals. Brokerages remain bullish on BEL, HAL and Mazagon Dock, citing strong order pipelines and indigenisation tailwinds, but warn that execution risks and lofty expectations could cap near-term upside.

India's central bank intervened to strengthen the rupee after the federal budget announcement, which negatively impacted government bonds and equities. While the budget prioritized manufacturing, it lacked the bold reforms investors sought. Analysts predict continued rupee weakness and rising local currency rates due to the budget's conservative approach and a global risk-off sentiment.

Indian bonds experienced a sharp decline following the federal budget, with the 10-year benchmark yield reaching a near-year high. This downturn was driven by record government borrowing plans, dampening investor sentiment. Elevated yields will increase borrowing costs across the economy and complicate the central bank's efforts to support growth.

Trump announced Kevin M. Warsh as his Fed chair pick, influenced by Treasury vetting led by Scott Bessent. Warshs dovish stance contrasts with past hawkish positions, raising questions about his independence and alignment with Trumps rate-cut preferences. Markets watch his approach to interest rates and Fed-Treasury coordination amid political scrutiny.

President Donald Trump backed Fed chair nominee Kevin Warsh, signalling confidence that he would support lower interest rates. However, the nomination could face delays as Republican Senator Thom Tillis threatens to stall any Fed pick until a Justice Department probe into Jerome Powell concludes, creating fresh uncertainty around the confirmation process.

India's manufacturing activity saw a slight uptick in January, driven by improved domestic demand, though export orders remained sluggish. Despite a modest rise in factory output and a three-month high in hiring, business confidence dipped to a three-and-a-half-year low. Input costs increased, but output price inflation eased, indicating limited pricing power for manufacturers.

Indian equity markets reacted negatively to the Union Budget and a hike in securities transaction tax. Market veteran Ravi Dharamshi stated the disappointment arose from the absence of measures to attract foreign capital. He noted that foreign institutional investors have been net sellers for over a year. Dharamshi described the budget as fiscally credible, with well-managed key parameters.

The Union Budget 2026-27 delivers fiscal prudence without sacrificing growth, keeping deficit consolidation on track while sustaining strong capex. Markets reacted cautiously to the STT hike, but measures on buybacks, PIS liberalisation, bond market development and support for sunrise sectors signal a steady, reform-oriented roadmap focused on long-term competitiveness.

Indian data centre stocks rallied as the Union Budget announced a tax holiday until 2047 for foreign cloud service providers, aiming to position India as a global hub. Companies like Anant Raj, Techno Electric, and Netweb Technologies are expected to benefit from increased data centre development and infrastructure demand.

U.S. equity markets enter a crucial week as earnings from megacaps, including Alphabet and Amazon, follow Microsofts disappointing results. Investors eye the February 6 jobs report for labour market insights. Strong AI-driven growth, corporate earnings, and Fed policy shape cautious optimism, while gold, silver, and valuations add volatility to markets.

Billionbrains Garage Ventures, Groww's parent, saw its shares tumble following the Union Budget's hike in Securities Transaction Tax on futures and options. The increased STT rates, impacting derivatives trading, led to a broad sell-off in brokerage and exchange stocks. While potentially equity-positive long-term, the move could cause short-term portfolio rebalancing.

Nilesh Shah of Kotak MF highlights the Union Budget 2026's focus on continuity, fiscal prudence, and long-term growth drivers. The budget prioritizes reforms and execution, with capital expenditure exceeding net market borrowing for the first time. While STT hikes and SGB taxation pose challenges, increased focus on skilling and manufacturing are seen as positives.

Union Budget 2026-27: Fitch Ratings observes India's Budget prioritizes growth through sustained capital spending. The fiscal deficit target shows a marginal improvement, reflecting a deliberate slowdown in consolidation. This strategy aims to support economic expansion amid ongoing private investment recovery. The budget reaffirms a commitment to fiscal discipline and medium-term growth prospects.

Precious metals are witnessing high volatility, with silver likely to hold support near $65 and gold around $4,440 per troy ounce, says Manoj Kumar Jain of Prithvi Finmart. Prices remain sensitive to dollar fluctuations and geopolitical tensions. On MCX, gold and silver have defined support and resistance levels. Jain advises investors to wait for stability before taking fresh positions.

The Union Budget 2026 has increased Securities Transaction Tax (STT) on equity derivatives, impacting futures and options trading costs. STT on Nifty futures has risen from 0.02% to 0.05%, increasing the cost per lot by approximately Rs 500. Options trading also sees a 50% STT hike on premiums, raising concerns about market liquidity and foreign participation.

Following Union Budget 2026, market participants are analyzing its impact. Sundararaman Ramamurthy believes the STT hike will encourage longer-term equity investments and attract foreign funds by strengthening India's manufacturing and infrastructure. The budget's significant capital expenditure projection is seen as a step towards developed India.

Sensex and Nifty rebounded from losses in a special weekend session, as investors assessed the implications of the federal budget, which fell short of expectations for measures to attract foreign capital.

Hindustan Copper shares rebounded on Monday despite a sharp drop in global copper prices, as value buyers stepped in after a steep two-day correction. The stock had fallen 21% across Friday and Sundays special Budget session, with metal price weakness continuing to weigh on near-term sentim

Gold and other precious metals are experiencing significant drops. This decline is linked to increased margin requirements on futures trading set by CME. Investors are also reacting to President Donald Trump's choice for Fed chair, Kevin Warsh, and his potential approach to interest rates. Silver has reached a three-week low. The market is closely watching these developments.

The Indian central bank likely intervened before Monday's local spot market opening, preventing the rupee from nearing record low levels. Traders reported the central bank's actions helped shore up the currency to 91.77 per dollar, a gain of 0.2% from Friday's close. This intervention appears aimed at preventing a fall below the 92 mark.

Gold and silver have maintained their value in a volatile 2026, prompting investor interest. However, experts advise limiting precious metal exposure to 10-15% to avoid deviating from core asset allocation, even amidst talk of a commodity supercycle. Earnings are tepid, with banks performing adequately, while most sectors are expected to miss high market expectations.