Stock Markets Rise Over 1% on Tax Clarity
**Market Brief: Indices Rebound Post-Budget**
**Market Recovery**
Indian stock markets staged a robust recovery on Monday, February 2, shaking off the sharp losses from the Union Budget session. Investors looked past the hike in **Securities Transaction Tax (STT)** to focus on the government's sustained capital expenditure push.
**Key Indices**
* **Sensex:** Surged **944 points** (+1.2%) to close at **81,666**.
* **Nifty 50:** Gained **263 points** (+1.06%) to reclaim the psychological **25,000** mark, ending at **25,088**.
**Drivers of Sentiment**
The bounce-back was fueled by short covering and "value buying" in heavyweights like **Reliance Industries**, **ICICI Bank**, and **L&T**. Sentiment improved as the market digested the **STT hike** on futures (up to **0.05%**) and options (up to **0.15%**), shifting focus to the **₹12.2 lakh crore** capex outlay for FY27. A sharp drop in global commodities also aided the bulls, with **Brent Crude** tanking over **4%** to hover around **$66.45** per barrel.
**Sectoral Performance**
* **Auto:** Led the rally, rising over **2%** on the back of strong January sales data from majors like **Tata Motors**.
* **Gainers:** Metal, FMCG, and PSU Bank indices rose between **1%** and **2.3%**.
* **Laggards:** IT and Healthcare sectors faced mild selling pressure.
**Institutional Activity (Feb 2)**
* **FIIs:** Remained net sellers, offloading **₹1,832 crore** in the cash segment.
* **DIIs:** Continued to support the market, net buying **₹2,446 crore**.