Indian Stock Markets Bounce Back Strongly with Over 1% Gains
Indian equity markets staged an impressive recovery on February 2, 2026, with benchmark indices surging over 1% as investors engaged in value buying following the previous day's Budget-related drubbing. The sharp rebound came after markets had experienced significant volatility and declines in the immediate aftermath of the Union Budget presentation.
Sensex Records Substantial Gains of 943 Points
The 30-share BSE Sensex rallied strongly throughout the trading session, closing with substantial gains of 943.52 points or 1.17% to settle at 81,666.46. During intraday trading, the benchmark index demonstrated even stronger momentum, surging 1,009.31 points or 1.25% to reach a day's high of 81,732.25.
Post-Budget Recovery Driven by Value Buying
The market recovery was primarily driven by value buying across multiple sectors as investors identified attractive opportunities following the previous day's decline. Market analysts noted that the rebound reflected:
- Strategic accumulation of quality stocks at lower valuations
- Improved sentiment after initial Budget reactions settled
- Institutional participation supporting the recovery rally
- Sector-specific optimism based on Budget announcements
Broader Market Participation and Technical Factors
The recovery was not limited to the Sensex alone, with the broader NSE Nifty also participating in the upward movement. Market technicians observed that the rebound came after key support levels held firm, suggesting underlying strength in the market structure despite the previous day's volatility.
Trading volumes remained healthy throughout the session, indicating genuine buying interest rather than mere short covering. The recovery pattern suggested that investors were looking beyond immediate Budget reactions to focus on medium-term growth prospects and corporate fundamentals.
Market Outlook and Investor Sentiment
Financial experts believe this recovery demonstrates the resilience of Indian markets and their ability to absorb Budget-related volatility. The strong bounce-back indicates that long-term investors remain confident about India's economic growth trajectory despite short-term fluctuations.
The market movement on February 2, 2026, serves as a reminder that Budget day reactions often create temporary dislocations that value-oriented investors can capitalize on. As markets digest Budget implications more thoroughly, analysts expect continued stability with selective opportunities across different sectors.
