Stock Market Update: Key Gainers and Losers on NSE and BSE for February 2
Stock markets experienced a significant recovery on Monday, rebounding sharply after a tumultuous Budget-day session. The benchmark indices saw a surge in value buying, particularly in blue-chip sectors such as oil and gas, banking, and automobiles. The BSE Sensex rose by 943.52 points, or 1.17 percent, closing at 81,666.46, while the NSE Nifty 50 climbed 262.95 points, or 1.06 percent, to settle at 25,088.40. This recovery follows a steep decline on Budget day, where concerns over proposed tax hikes and government borrowing had led to heavy selling.
Market Recovery Details
The stock market’s rebound came after a challenging session on Budget day, where the Sensex had plummeted by 1,546.84 points, or 1.88 percent, closing at 80,722.94. The Nifty 50 also faced a significant drop, falling 495.20 points, or 1.96 percent, to end at 24,825.45. The sharp decline was primarily driven by worries regarding an increase in the securities transaction tax (STT) on derivatives and higher government borrowing projections for the upcoming fiscal year. However, Monday’s trading session saw a turnaround, with the Sensex reaching an intraday high of 81,732.25, reflecting a rise of 1,009.31 points, or 1.25 percent.
Market analysts noted that easing global crude oil prices contributed to the positive sentiment in the equity markets. Vinod Nair, Head of Research at Geojit Investments Limited, highlighted that the market’s recovery was a response to the previous day’s volatility and the government’s commitment to fiscal prudence and growth. The decline in crude oil prices also indicated a potential easing of geopolitical tensions, further supporting market stability.
Top Gainers and Losers
In the Nifty 50 index, Power Grid emerged as the top gainer, surging by 7.75 percent, followed by Tata Motors PV, which rose by 5.49 percent. Other notable gainers included Adani Ports SEZ, Tata Consumer, and BEL, all of which saw significant increases. Conversely, Shriram Finance was the biggest loser in the Nifty 50, declining by 3.56 percent, followed by Axis Bank and Max Healthcare, which fell by 2.16 percent and 1.91 percent, respectively.
The BSE Sensex mirrored this trend, with Power Grid again leading the gains at 7.58 percent, followed by Adani Ports SEZ and BEL. On the downside, Axis Bank and Infosys were among the top losers, reflecting the cautious sentiment among investors. The mixed performance of stocks indicates a market still adjusting to the implications of the recent Budget announcements.
Investor Sentiment and Market Outlook
Despite the positive movement in the markets, investor sentiment remains cautious. Foreign institutional investors (FIIs) were net sellers, offloading equities worth Rs 588.34 crore, according to exchange data. Ponmudi R, CEO of Enrich Money, noted that while there was selective value buying in large-cap stocks, overall market sentiment was still guarded due to the elevated volatility following the Budget day sell-off.
The recovery observed on Monday suggests that investors are recalibrating their positions after the sharp declines experienced during the Budget session. Analysts believe that the market’s focus will continue to be on the government’s fiscal policies and their potential impact on economic growth. As the week progresses, market participants will be closely monitoring global economic indicators and geopolitical developments that could influence trading patterns.
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