Mumbai, Feb 2 The Indian equity markets traded higher early on Monday, recovering some of the losses made on Budget Day, despite negative global cues.
As of 9.33 am, Sensex added 373 points, or 0.46 per cent, to reach 81,096, and Nifty gained 87 points, or 0.35 per cent to settle at 24,913.
Main broad-cap indices posted losses, as the Nifty Midcap 100 declined 0.50 per cent, and the Nifty Smallcap 100 lost 0.85 per cent.
All sectoral indices were trading in the red, except metal, realty as well as oil and gas. Nifty consumer durables and IT were major losers, down 1 per cent and 0.61 per cent.
Immediate support lies at 24,650-24,700 zone, while resistance is anchored at 25,950–25,000 zone, market watchers said.
Analysts said the market selloff on the Budget Day was a knee-jerk reaction to the sharp increase in STT on F&O trades. This was not aimed at raising revenue, but to discourage retail traders from complex F&O trading, in which 92 per cent of them were losing money.
A section of the market was also unrealistically expecting changes in the LTCGs tax, they added.
The 10 per cent nominal GDP growth projected in the Budget is achievable and has the potential to deliver around 15 per cent earnings growth in FY27. A significant upturn in the market may take time, perhaps with a retreat from AI trade globally, they noted.
The Asia-Pacific markets posted major losses in the morning session as investors parsed private data for China’s factory activity in January.
In Asian markets, China's Shanghai index eased 1.32 per cent, and Shenzhen lost 1.41 per cent, Japan's Nikkei declined 0.52, and Hong Kong's Hang Seng Index lost 2.15 per cent. South Korea's Kospi dipped 4 per cent.
The US markets ended largely in the red in the last trading session as Nasdaq lost 0.94 per cent. The S&P 500 eased 0.43 per cent, and the Dow declined 0.36 per cent.
On February 1, foreign institutional investors (FIIs) net sold equities worth Rs 588 crore, while domestic institutional investors (DIIs) were net sellers of equities worth Rs 683 crore.
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