On Monday, the day after the presentation of the Union Budget 2026-27, the Indian stock market opened lower amid mixed global cues but quickly recovered to trade in the green. The key domestic indices, Sensex and Nifty, initially started with losses but soon gained momentum.
The BSE Sensex opened at 80,555.68, down 167.26 points or 0.21%, while the NSE Nifty50 started at 24,796.50, down 28.95 points or 0.12%. However, within minutes, both indices moved into positive territory.
By around 9:34 AM, the 30-share BSE Sensex had risen by 331.67 points or 0.41% to reach 81,054.61. Similarly, the NSE Nifty jumped 72.80 points or 0.29% to 24,898.25.
Looking at the broader market, the Nifty Midcap 100 index fell by 0.30%, while the Nifty Smallcap 100 index declined by 0.41% during early trade. Sector-wise, all sectoral indices except Nifty Metal and Nifty Oil & Gas were trading in the red.
Among Sensex stocks, NTPC, ITC, Bajaj Finserv, Titan, and Trent were the top losers, with declines up to 1.79%. On the other hand, Larsen & Toubro, BEL, Adani Ports, Asian Paints, and Indigo led the gainers, rising as much as 2.5%.
On Sunday, Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27, announcing an increase in Securities Transaction Tax (STT) on futures and options. The STT on futures was raised to 0.05%, while the STT on options premium increased from 0.10% to 0.15%.
This announcement triggered a sharp fall in the domestic market, with benchmark indices Sensex and Nifty experiencing heavy losses. The Sensex touched a low of 79,899.42 during the session, dropping nearly 3,000 points intraday, while the Nifty fell to 24,572.
Akash Shah, Technical Research Analyst at Choice Broking, noted that the Nifty formed a strong bearish candle in the previous session and closed below the 200-day EMA, indicating weakening trends. He identified a strong resistance zone between 24,950 and 25,000, with support levels at 24,650-24,700. The Relative Strength Index (RSI) dropped to 31, showing an oversold condition. Additionally, the India VIX surged 10.73% to 15.09, reflecting increased market volatility and investor anxiety.
The expert advised investors and traders to adopt a selective and disciplined approach amid global uncertainties and rising volatility. He recommended focusing on fundamentally strong stocks during declines and suggested initiating new long positions only after a strong and sustainable breakout above the 25,000 level in Nifty, which would signal a genuine improvement in market sentiment.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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