SENSEX jumps 450+ points, NIFTY50 tops 24,900 led by Larsen & Toubro and Bharat Electronics

On February 2, 2026, Indian stock markets staged a sharp turnaround after a weekend sell‑off linked to the Union Budget. The BSE SENSEX jumped over 450 points, and the NIFTY50 index climbed past the key 24,900 level in early trade, snapping recent volatility and signaling fresh value buying among investors. Stocks such as Larsen & Toubro (L&T) and Bharat Electronics led the gains, helping lift broader sentiment on the benchmark indices. 

After a Budget‑day slump driven by policy shocks, this rebound points to renewed confidence in select blue‑chip names. This surprising bounce sets the stage for an exciting market narrative ahead.

Market Overview: What Drove the Rally on February 2, 2026

On February 2, 2026, Indian markets managed a rebound after heavy volatility tied to the Union Budget 2026 reaction. Benchmarks edged higher in early trading as sentiment shifted from sharp sell‑offs seen the previous day. The BSE SENSEX climbed over 450 points, while the NIFTY50 index tested levels above 24,900 during intraday trade. Investors were more active in sectors like infrastructure, banking, and defence, even as tech and consumer stocks lagged.

The market’s mixed performance reflects cautious optimism. Traders are adjusting to budget impacts and scanning for strong fundamentals among major stocks. The rebound suggests selective buying rather than broad risk‑on sentiment.

What Were the Key Index Movements?

How did SENSEX and NIFTY50 perform early in the session?

On Monday, the SENSEX opened weaker but later surged. It hit an intraday high of around 24,942 on NIFTY50 before some profit‑booking began. Heavyweights such as Larsen & Toubro, Reliance Industries, and ICICI Bank supported the rebound.

Were all sectors gaining?

No. Several sectors, including IT, consumer durables, and healthcare, were still trading lower. In contrast, realty and energy indices showed strength, reflecting investor interest in infrastructure and oil & gas stocks after the budget announcements.

This split performance highlights a market still in flux gains focused on a handful of heavyweights.

Sector Trends: Winners and Laggards

Which Sectors Led the Upside?

• Infrastructure & Capital Goods: Larsen & Toubro and other related names rallied on expectations of increased public capex.
• Banking & Financials: HDFC Bank, ICICI Bank saw steady buying.
• Defence Stocks: Defence names, including BEL and peers, showed strength on growth expectations.

Where Was the Weakness?

• IT & Healthcare: These sectors saw profit‑taking after budget concerns.
• Consumer Goods & Autos: These also lagged amid risk‑off sentiment.

This mix signals selective strength capital rotating back into areas with robust earnings or policy support.

Spotlight: Larsen & Toubro Ltd (L&T)

What Is L&T’s Stock Outlook According to Meyka?

Larsen & Toubro (LT.NS) is rated with a neutral to bullish sentiment in technical terms based on momentum and price trends. The stock shows a Bullish trend with moderate strength and low volatility, indicating potential upside with caution near resistance levels.

Fundamental Snapshot

Meyka’s fundamental data shows L&T with a PE ratio of about 28–29, modest profit margins, and solid ROE of ~15-16%. These numbers point to a company with long‑term business breadth, though short‑term earnings growth may fluctuate.

Recent Results & Analyst Commentary

Recent quarterly results showed a slight drop in profit for Q3 FY26, with revenue still growing. This reflects broader slowdowns in order inflows.

What Analysts are Watching:

• Order book strength and new project awards.
• Earnings beat potential or misses in upcoming quarters.
• Margin trends as big projects roll in.

L&T remains a core heavyweight stock on Dalal Street, and sectoral trends post‑budget could shape its near‑term path.

Spotlight: Bharat Electronics Ltd (BEL)

What Is BEL’s Stock Forecast?

According to Meyka’s AI‑powered insights, Bharat Electronics Limited (BEL.NS) has a neutral to slightly bullish setup with average momentum. Its 1‑year forecast target is ~INR 448, with a potential multi‑year target above INR 600, underscoring longer‑term growth prospects.

Technical Analysis Summary

Meyka’s technical indicators show bullish momentum with some caution due to possible overbought signals. Key supports and resistance levels help traders gauge entry or exit opportunities.

What Meyka Says About BEL?

The stock trades above long‑term averages and reflects solid investor demand. Meyka’s models emphasize a longer‑term upside based on defence demand and fundamental strength.

Supporting Analyst View

Recent earnings showed a 21% jump in net profit and a 24% rise in revenue for Q3 FY25‑26. Shares hit a 52‑week high, reflecting strong sector demand and execution.

What Caused Market Volatility Around the Budget?

The sharp sell‑off in the special trading session on February 1, 2026, was largely driven by a significant hike in Securities Transaction Tax (STT) on derivatives. This change spooked traders and triggered heavy selling across financials and broker‑related stocks.

The indices plunged, with Sensex down over 1,500 points and NIFTY50 below 24,850 at the close, the worst budget day decline in years. However, investors began rebalancing positions the next day, leading to selective rebounds.

What’s Next for Indian Markets?

Upcoming Drivers

• Earnings season: Regular results from Q3 FY26 will guide sentiment.
• Global cues: US Fed actions, crude price movements.
• Foreign flows: FII/DII behaviours post‑budget.

Markets could stay volatile but focused on data catalysts and sector rotation.

Final Words

The SENSEX rebound and NIFTY50 push toward 24,900 on February 2 reflects selective buying in heavyweights like L&T and BEL after budget‑linked volatility. Traders should watch sector trends and earnings catalysts, as the markets balance policy impact with corporate performance. Use AI tools wisely and combine them with fundamental research for better decision‑making.

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Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.