The markets traded cautiously on Monday investors continued to digest the sharp sell-off triggered by the Union Budget 2026–27. Benchmark indices Sensex and Nifty 50 struggled to regain momentum after recording heavy losses during Sunday’s special budget trading session.
In the previous session, the Sensex had dropped over 1,500 points, while the Nifty declined by nearly 500 points, marking one of the steepest Budget-day corrections in recent years. Volatility remained high on Monday, with markets moving between marginal gains and losses as investor confidence stayed fragile.
The sell-off was largely driven by the government’s decision to raise the Securities Transaction Tax (STT) on futures and options, which increased trading costs and dampened appetite for high-volume derivative trades. Market participants said the move came as a surprise and led to broad-based selling across sectors.
Some pockets of the market, however, showed resilience. IT majors such as TCS and Wipro traded higher, supported by defensive buying, while select healthcare stocks also saw limited gains amid uncertainty.
On the downside, heavyweights continued to face pressure. Larsen & Toubro (L&T) slipped as capital goods stocks saw profit-taking, while Adani group companies remained among the key drags on the indices. PSU banks, metal stocks and defence shares, including Bharat Electronics (BEL), also traded lower, reflecting caution over valuations and policy impact.
Global cues remained mixed, with Asian markets subdued and commodity prices easing.