Equity

PSU bank shares declined after advancing in the past trading session.

At 12:25 IST, the barometer index, the S&P BSE Sensex declined 789.90 points or 0.94% to 81,513.27. The Nifty 50 index fell 276.45 points or 1.09% to 25,044.20.

The broader market underperformed the frontline indices. The BSE 150 Mid-Cap index declined 1.96% and the BSE 250 Small-Cap index tumbled 1.39%.

The market breadth was weak. On the BSE, 1,796 shares rose and 2,083 shares fell. A total of 215 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 2.56% to 13.98.

MCX Gold futures for the 5 February 2026 settlement fell 4.21% to Rs 1,42,880, while MCX Silver futures for the 5 March 2026 settlement declined 9% to Rs 2,65,665.

Union Budget 2026

Union Finance Minister Nirmala Sitharaman is presenting her ninth consecutive Union Budget in the Lok Sabha, becoming the first finance minister in India to deliver nine budgets in a row. She said Budget 2026'27 was prepared at Kartavya Bhavan and was being presented amid a challenging global environment where trade and multilateralism have become increasingly important.

Continuing the Union Budget 2026 announcements, Union Finance Minister Nirmala Sitharaman said the government has met its fiscal consolidation commitment of bringing the fiscal deficit below 4.5% of GDP by FY26. The revised estimate for FY26 has been pegged at 4.4% of GDP, while the fiscal deficit is projected to further decline to 4.3% of GDP in FY27. To finance the deficit, the government will borrow Rs 11.7 lakh crore through dated securities in FY27.

On the tax front, Sitharaman announced that the Income Tax Act, 2025, will come into force from April 1, with rules and return forms to be notified shortly. The Budget also proposed several compliance-friendly measures, including removal of interest liability on penalty amounts during the pendency of appeals before the first appellate authority, simplification of TDS on property purchases from non-residents through PAN-based challans, and immunity from prosecution for non-disclosure of non-immovable foreign assets valued below Rs 20 lakh, effective retrospectively from October 1, 2024.

Further easing taxpayer compliance, the finance minister proposed extending the timeline for revising income tax returns from December 31 to March 31 on payment of a nominal fee, along with a staggered filing calendar. Under the proposal, individuals filing ITR-1 and ITR-2 will continue to have a July 31 deadline, while non-audit business cases and trusts will be allowed to file returns up to August 31.

Significant relief was also announced for NRIs and overseas travellers through sharp cuts in Tax Collected at Source. The TCS rate on overseas tour packages will be reduced to a flat 2% from the existing 5-20%, with no minimum threshold, while TCS on education and medical remittances under the Liberalised Remittance Scheme will be lowered from 5% to 2%, improving cash flows and easing the tax burden.

Tourism was positioned as a major driver of employment and growth, with proposals including the establishment of a National Institute of Hospitality, a pilot programme to upskill 10,000 tourist guides, and the creation of a National Destination Digital Knowledge Grid. The Budget also announced a push for eco-tourism through sustainable trekking trails and wildlife tourism initiatives, alongside the setting up of one girls' hostel in every district to support higher education.

The finance minister also outlined steps to strengthen creative, design and media education through ABGC content creator labs, a new National Institute of Design in eastern India, and five university townships near major industrial and logistics corridors. In the primary sectors, measures were announced to strengthen fisheries, animal husbandry and high-value agriculture through improved infrastructure, market linkages, credit-linked subsidies and support for crops such as coconut and sandalwood.

In the healthcare space, Sitharaman announced the establishment of NIMHANS 2.0, a premier mental health institute to be set up in North India, reinforcing the government's focus on mental healthcare infrastructure.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 1.63% to 13.86. The Nifty 24 February 2026 futures were trading at 25,309, at a premium of 264.8 points as compared with the spot at 25,044.20.

The Nifty option chain for the 24 February 2026 expiry showed a maximum call OI of 204.2 lakh contracts at the 26,000 strike price. Maximum put OI of 110.3 lakh contracts was seen at 24,000 strike price.

Buzzing Index:

The Nifty PSU Bank index fell 2.71% to 8,774.80. The index rose 0.06% in the past trading session.

Bank of Baroda (down 5.33%), Bank of India (down 4.98%), Indian Bank (down 3.07%), Punjab National Bank (down 2.74%) and Bank of Maharashtra (down 2.47%), Indian Overseas Bank (down 2.3%), Union Bank of India (down 2.23%), Punjab & Sind Bank (down 2.12%), State Bank of India (down 2.01%) and Central Bank of India (down 1.55%) declined.

Stocks in Spotlight:

logistics and cargo-related stocks rallied on the bourses. Container Corporation of India rose up to 2.99%, Adani Ports and Special Economic Zone gained 0.87%, JSW Infrastructure climbed 2.69%, Shipping Corporation of India advanced 3.24%, Allcargo Logistics added 1.63% and Delhivery rose 1.37% after Union Finance Minister Nirmala Sitharaman proposed a new dedicated freight corridor connecting Surat in Gujarat with Dankuni in West Bengal to strengthen freight movement across the country.

Powered by Capital Market - Live News