**Market Brief: Post-Budget Rebound & Volatility Analysis** **February 2, 2026** **Indices Reclaim Key Levels** Indian equity benchmarks staged a sharp recovery today, wiping out a significant portion of the losses sustained during the Budget-day sell-off. The **BSE Sensex** surged **944 points** (+1.17%) to close at **81,666**, while the **Nifty 50** reclaimed the psychological 25,000 mark, ending at **25,088** (+1.06%). **Volatility Drivers: STT & Borrowing Costs** The initial market "drubbing" was triggered by the Union Budget 2026-27, specifically the steep hike in the Securities Transaction Tax (STT) on F&O trading—futures STT jumped to **0.05%** from 0.02%—and a higher-than-expected gross borrowing plan of **₹17.2 lakh crore** for FY27. Bond yields spiked in response, with the 10-year yield hitting **6.78%**. **Crude Relief & Global Cues** Sentiment improved significantly today due to a sharp correction in global oil prices. Brent Crude tanked nearly **5%** to trade around **$65.94** per barrel, driven by signs of easing geopolitical tensions between the U.S. and Iran. This decline offered crucial respite to India’s import bill, offsetting concerns over the government's fiscal math. **Technical Outlook** Despite the bounce, technical damage remains visible. The Nifty 50 briefly slipped below its **200-day moving average** during the Budget session, a sign of weakening medium-term momentum. While the index is back above **25,000**, analysts caution that the broader trend remains guarded. The consensus suggests a "sell on rise" strategy as the market digests the liquidity impact of higher taxes. **Sector Watch** Broad-based buying was observed across **14 of 16 sectors**, with Oil & Gas, Banking, and Auto stocks leading the charge. However, broader caution persists as Foreign Institutional Investors (FIIs) remain net sellers, offloading equities worth over **₹580 crore** in the previous session.