TLDR
Market Recap: February 02, 2026
On February 02, Indian equities staged a sharp rebound after the Budget-day rout, with dip-buying in heavyweights and infra names offsetting lingering anxiety around the proposed STT hike on derivatives and higher borrowing estimates. BSE Sensex closed at 81,666.46, up 943.52 points (+1.17%), while NSE Nifty 50 ended at 25,088.40, up 262.95 points (+1.06%). Broader risk recovered too: Nifty Midcap 100 +0.96%, Nifty Smallcap 100 +0.84%. Volatility cooled meaningfully, with India VIX closing at 13.7825 (about -8.69% vs Feb 1). Flows stayed two-speed: FIIs net sold ₹1,832 cr while DIIs net bought ₹2,446 cr (provisional), keeping the recovery domestically anchored.
Key Drivers :
Reliance-led rebound: Reliance Industries jumped after Sunday’s drop, helping benchmarks claw back lost ground.
Infra bid stayed firm: Budget capex messaging kept infra proxies supported, with Larsen & Toubro among the leaders.
Derivatives tax overhang lingers: The proposed STT hike is still being repriced across brokers and market infrastructure names.
Today’s Top Stories:
Reliance: Heavyweight rebound led the post-Budget bounce, helping indices regain traction despite the derivatives tax overhang.
Hyundai Motor India: Profit rose but missed estimates as input and labour costs climbed, keeping margin discipline in focus.
Honeywell Automation India: One-time labour code charge and higher costs hit profit, though demand and revenue stayed steady.
ITC and tobacco pack: Excise-linked price hikes spooked the sector, triggering fresh selling on demand and earnings risk.
Groww parent: Stock slid again as the STT hike sparked fears of slower F&O activity and trading-led revenue pressure.
TOP STORIES
1. Reliance Industries rebounds, anchors post-Budget bounce
Gemini-2.5
Move: RIL jumped 3.2% after the Budget-session drop, becoming the biggest index support.
So what: Fast dip-buying signals confidence in bellwethers, even with derivatives tax uncertainty lingering.
Tape: Benchmarks rose over 1% as infra and heavyweight support overwhelmed caution.
Reliance led the post Budget bounce. What’s your read on this move?
2. Hyundai Motor India misses profit view as costs bite
Gemini-2.5
Print: Q3 profit rose 6.4% to ₹12.34 bn but missed estimates on higher costs.
So what: Margin control becomes the story, with raw material and labor inflation now the swing factor.
Tape: Shares still gained about 1.3%, implying expectations were already conservative.
Hyundai beat on revenue but missed profit on costs. Your stance?
3. Honeywell Automation India profit slips on labor code charge
Gemini-2.5
Print: Profit fell 8.3% to ₹1.21 bn as costs rose and a one-time charge hit.
So what: Demand looks steady, but investors will track how quickly margins normalize after adjustments.
Tape: Stock had closed up 2% before results, showing resilience despite a noisy cost quarter.
$HONAUT.NSE ( ▼ 0.44% )
Honeywell profit dipped on one-time labor code charge. How do you view it?
4. ITC and tobacco pack slide as excise kicks in
Gemini-2.5
Trigger: New excise duty drove cigarette price hikes, reviving demand elasticity worries.
So what: Market is pricing near-term volume risk and operating leverage pressure if downtrading accelerates.
Tape: Tobacco stocks fell sharply on the headline, despite the broader market rebound.
Tobacco stocks fell after excise-driven price hikes. What happens next?
5. Billionbrains Garage Ventures (Groww) extends slide on STT fears
Gemini-2.5
Trigger: Higher STT on F&O in the Budget raised concerns over activity and trading-led monetization.
So what: If volumes slow, revenue sensitivity hits platforms tied to active traders hardest.
Tape: Stock dropped up to 4.64% intraday, extending the two-session drawdown.
STT hike fears hit Groww parent again. Your take on F&O volumes?
GYAANI HOT TAKES
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