NIFTY50, SENSEX today: Budget cues, FII activity, key things to know before markets open on Februrary 2

The Indian equity benchmarks are set to open flat on Monday, February 2, as indicated by GIFT NIFTY futures. NIFTY futures at GIFT City in Ahmedabad advanced 15 points to 24,868 amid weak cues from Asian markets.

The Indian equity benchmarks nosedived on Sunday's special budget trading session as hike in Securities Transaction Tax (STT) shook investors' sentiment towards equity markets. The SENSEX plunged as much as 2,827 points from the day's highest level to fall below 80,000 mark and NIFTY50 index touched an intraday low of 24,571 after hitting a high of 25,440 during the session.

The SENSEX dropped 1,547 points to settle at 80,723 and NIFTY50 index plunged 495 points to close at 24,825.

Finance Minister Nirmala Sitharaman while presenting Budget for financial year 2026-27 announced hike in STT for futures and options segment. Finance Minister announced a hike in STT for futures trade from 0.02% to 0.05% and raised the STT on options trade to 0.15%.

Asian markets

Asian shares were trading sharply lower on Monday as a selloff in precious metals led to a cautious start to the week that is packed with corporate earnings, central bank meetings and major economic data, news agency Reuters reported.

China's Shanghai Composite index fell 0.8%, South Korea's KOSPI dropped 2.76%, Hong Kong's Hang Seng plunged 1.72% while Japan's Nikkei advanced 0.21%.

Wall Street update

US stocks ended sharply lower on Friday as investors as investors viewed President Donald Trump's nomination of former Federal Reserve Governor Kevin Warsh as a hawkish choice to succeed Federal Reserve Chair ​Jerome Powell, according to news agency Reuters.

S&P 500 index fell 0.43%, Dow Jones Industrial Average dropped 0.36% and tech heavy Nasdaq declined 0.94%.

On top of assessing the risks from US tensions with countries including Iran, investors were also worried about ‌the prospect of another US government shutdown after new barriers emerged in the Senate to a deal that would ensure continuation of funding for agency operations, Reuters report added.

FII/DII activity

Foreign institutional investors sold shares worth ₹588 crore in Sunday's budget session while domestic institutional investors sold shares worth ₹683 crore, data from the National Stock Exchange showed.

The FIIs have sold shares worth ₹1,24,221 crore since the last Budget, according to the data from National Securities Depository Limited (NSDL).

Stocks to watch

The increase in the defence outlay, including the budget for capital acquisition, against the backdrop of the "historic success of Operation Sindoor", has further strengthened our resolve to make India's defence system even more robust, Defence Minister Rajnath Singh said.

The long-term incentives to foreign cloud and tech giants are expected to turbocharge investments in cutting-edge data facilities and digital infrastructure.

IT Minister Ashwini Vaishnaw said he expects $200 billion investment to flow into data centres – and it is also seen as sharpening India's edge in the global AI race, at a time when New Delhi is keen to take centre stage in global discourse on artificial intelligence.

"By placing biopharma among the seven strategic frontier sectors and launching Biopharma Shakti with an outlay of ₹10,000 crore over five years, the Union Budget makes a decisive investment in India's health and innovation future," Biocon Group Chairperson Kiran Mazumdar Shaw said in a statement.

Presenting the Union Budget for 2026-27, Finance Minister Nirmala Sitharaman announced the establishment of high-tech tool rooms at two locations to boost capital goods manufacturing.

Green energy stocks: Waaree Energies, Premier Energies, NTPC Green, and others will be in focus as the Union Budget aims to accelerate grid-scale energy storage and enable seamless integration of renewable energy, Union Minister Pralhad Joshi said on Sunday.

Sharing his views on the budget announcements by Finance Minister Nirmala Sitharaman, the Minister of New and Renewable Energy (MNRE), Joshi, said the Union Budget takes a decisive step towards advancing India's renewable energy and storage ecosystem.

He said that by extending the Basic Customs Duty (BCD) exemption on capital goods used in the manufacturing of lithium-ion cells for batteries and Battery Energy Storage Systems (BESS), the budget aims to accelerate grid-scale energy storage and enable seamless integration of renewable energy.

Presenting the Union Budget for 2026-27 in the Lok Sabha, she said the government will continue to develop infrastructure in Tier-2 and Tier-3 cities.

The government also proposes to set up a risk guarantee fund for the infrastructure sector, she added.

The Budget allocation includes the construction of new lines and the purchase of locomotives, wagons, and coaches, among other works.

The ministry had received ₹2,52,000 crore in FY 2025-26.

In her Union Budget 2026-27 speech, Sitharaman proposed the restructuring of REC Ltd (formerly Rural Electrification Corporation) and Power Finance Corporation (PFC) as part of the government's public sector financial institution strengthening.

PFC and REC play a key role in funding power generation, transmission, and distribution projects.

The government on Sunday announced the setting up of Mega Textile Parks in challenge mode with a focus on integrated infrastructure and value addition, among a raft of reforms, including a five-pronged integrated policy framework, to provide a shot in the arm to India's employment-intensive textile sector.

Trade setup

On the technical charts, the NIFTY50 closed below the 200 EMA level of 25,150, indicating a bearish setup for the index on Monday. The index faced resistance at the 24,500 levels on Sunday in a highly volatile trade. The index moved nearly 1000 points from the intraday low levels.

On the option data front, the NIFTY50 witnessed heavy liquidation of open interest at the 25,000 on the put side and witnessed open interest addition on the call side, indicating a new resistance level for tomorrow’s expiry. On the downside, 24,500 puts held the highest open interest, indicating a near-term resistance for today.