Indian stock market rebounds strongly for second straight day after post-budget crash
Mumbai: The Indian stock market staged a powerful recovery for the second consecutive day on Tuesday, bouncing back sharply after witnessing a massive crash immediately following the presentation of the Union Budget 2026.
The benchmark indices had plunged heavily on Monday after Finance Minister Nirmala Sitharaman presented the Union Budget on Sunday. The BSE Sensex had fallen by a staggering 1,843.43 points, while the NSE Nifty declined by 593.45 points, triggering widespread concerns among investors.
However, the market showed remarkable resilience a day later. On Monday, the Sensex surged by 943.52 points and the Nifty gained 262.95 points, indicating renewed buying interest. The positive momentum continued on Tuesday as well, with both indices registering record gains.
In Tuesday’s trading session, the Sensex jumped by 2,072.67 points or 2.54 percent to close at 83,739.13, while the Nifty rose by 639.15 points or 2.55 percent to end at 25,727.55. The strong rally helped investors recover a significant portion of the losses incurred after the budget announcement.
Market experts attributed the rebound to improving global sentiments and the recently signed India–US trade agreement. “The India–US trade deal is certainly a decisive win. It removes a major overhang on Indian markets. Coming on the back of a strong budget, it significantly improves visibility on capital flows, rupee stability and manufacturing investments,” said A. Balasubramanian, Managing Director and CEO of Aditya Birla Sun Life AMC Ltd.
Among Sensex-listed companies, Adani Ports emerged as the biggest gainer with an impressive rise of 9.12 percent. Other major gainers included Bajaj Finance, InterGlobe Aviation, Power Grid, Sun Pharma, Bajaj Finserv and Reliance Industries. On the other hand, shares of Tech Mahindra and Bharat Electronics ended in the red.
The positive impact of the India–US trade agreement was also visible across sectors such as textiles, leather, gems and jewellery, auto ancillaries, seafood exports and specialty chemicals, which witnessed sharp buying activity.
Investor wealth saw a dramatic surge during the day. The market capitalisation of BSE-listed companies increased by Rs 12,10,877.45 crore to reach Rs 4,67,14,754.77 crore (USD 5.16 trillion). Within just 15 minutes of market opening, investor wealth had risen by nearly Rs 13 lakh crore.
The rally was further fuelled by US President Donald Trump’s decision to reduce tariffs on Indian products to 18 percent, which boosted investor confidence. Strong foreign institutional investor (FII) inflows also supported the upward movement.
At one point during early trading, the Sensex had soared by over 3,500 points and the Nifty by nearly 1,200 points, reflecting the renewed optimism in the market.
With global cues turning favourable and domestic fundamentals remaining strong, analysts believe the Indian markets may continue to remain bullish in the near term.
