Weekly Indian Stock Post Market Report (Week Ending 06 February 2026)

📊 Indian Market Overview

The Indian stock market wrapped up a wild but ultimately upbeat week with the key benchmark indices clawing back solid gains thanks to some big policy announcements, a string of robust macroeconomic data releases and that just-inked India-US trade deal. Although things initially looked shaky at the start of the week as the Union Budget 2026 came out and markets dropped sharply on Sunday. All thanks to worries about the budget – investors were soon bouncing back given the raft of fiscal reforms and infrastructure spending that came with it. And let’s not forget the even better global trade relations which did a great deal to put minds at ease

In the week ended 06 February 2026, the S&P BSE Sensex surged 1,310.62 points (1.59%) to close at 83,580.40, while the Nifty 50 jumped 373.05 points (1.47%) to settle at 25,693.70. Broader markets showed mixed trends, with the BSE 150 MidCap Index dipping slightly by 0.11% to 16,065.48, while the BSE 250 SmallCap Index declined 0.42% to 6,311.44.

The markets balanced short-term concerns with long-term optimism fuelled by stable RBI policy, infrastructure spending, and strengthened trade ties. This includes higher Securities Transaction Tax (STT) and minor profit booking.

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Weekly Index Movement

Highlight: Tuesday saw the biggest surge in the week with Sensex rising over 2,000 points in a single session, reflecting strong investor confidence.

Union Budget 2026: Key Takeaways

The Union Budget 2026, presented by Finance Minister Nirmala Sitharaman, underlined fiscal consolidation, job creation, and enhanced global competitiveness:

• Fiscal deficit projected to narrow to 4.3% of GDP in BE FY27 (from 4.4% in RE FY26).
• Capital expenditure increased to Rs 12.2 lakh crore, boosting infrastructure in Tier 2 and Tier 3 cities.
• Market borrowing planned at Rs 11.54 lakh crore through dated securities.

Tax Reforms:

• STT on derivatives: Futures increased to 0.05%, options to 0.15% (up from 0.10%).
• Income Tax Act, 2025 effective from 1 April 2026, with simplified slabs and TDS/TCS framework.
• TCS Rationalisation: Overseas tour packages and remittances now at 2%.
• Foreign Asset Disclosure Scheme: Encourages small taxpayers to declare previously undisclosed foreign assets.

Business & Investment Boost:

• MAT recalibration and final tax adjustments to encourage corporate transition.
• Non-resident & digital players: Tax holidays until 2047 for cloud services and component warehousing exemptions.
• Sectoral push: Manufacturing, logistics, clean tech, electronics, tourism, and urban livelihoods receive enhanced support.

Highlight: High capital expenditure and strategic fiscal measures aim to drive sustainable growth while balancing the fiscal deficit.

India-US Trade Deal

On Monday, India and the United States finalized a landmark trade agreement following discussions between PM Narendra Modi and US President Donald Trump:

• Tariffs on Indian goods were reduced to 18% from 25%; the previous 25% penalty on Russian oil purchases was scrapped.
• India agrees to stop buying Russian crude and ease trade barriers for US products.
• Target: Bilateral trade of $500 billion by 2030.
• Key beneficiaries: Textiles, apparel, seafood, MSMEs, and skilled professionals.

Market Impact:

• Positive for equities and rupee.
• Export-oriented sectors expected to see strong gains.

RBI Monetary Policy

The RBI Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.25%:

• Headline CPI inflation: Stable below tolerance band.
• Growth Outlook: Real GDP projected at 7.4% in FY26.
• RBI maintains a stance to ensure steady liquidity and growth.

Highlight: Monetary policy stability reassures investors, supporting sustained market recovery.

Domestic Economy

Manufacturing & Services PMI:

Key Takeaways:

• Indian manufacturing and services activity expanded, reflecting resilient domestic demand.
• Composite PMI indicates strong private sector momentum across goods and services.

Global Market Highlights

Germany: Retail sales rose 0.1% MoM in December after prior decline.

Eurozone: Inflation cooled to 1.7% in January, below ECB target; core inflation at 2.2%.

China: Manufacturing PMI improved slightly to 50.3 from 50.1, indicating modest growth.

US: ADP private payroll growth showed 22,000 new jobs in January, slightly lower than December revisions.

Highlight: Global indicators suggest stable growth trends, though inflation and employment data remain watchpoints for central banks.

Key Weekly Highlights

• Sensex gains: +1,310 points, closing above 83,500.
• Nifty 50: +373 points, highlighting investor confidence.
• BSE SmallCap Index: Despite midcaps lagging, small caps showed resilience in select sectors.
• Union Budget 2026: Boosted capital expenditure and tax rationalisation aimed at sustainable growth.
• India-US Trade Deal: Expected to boost exports, create jobs, and strengthen bilateral trade.
• RBI: Policy continuity ensures liquidity and growth stability.

 Conclusion

The week ending 06 February 2026 showcased a strong and resilient Indian market. The Union Budget 2026 and India-US trade deal provided strong tailwinds, while domestic growth indicators and RBI stability reassured investors. Although profit booking and global uncertainties remain, the overall outlook signals a positive trajectory for equities and economic growth. The markets managed to keep short-term worries pretty much in check by having a strong confidence in the long-term that came from a stable RBI policy, the government’s infrastructure plans and all those strengthened trade ties.

And key to all of this was the fact that longer-term investors were looking past things like higher Securities Transaction Tax (STT) and some minor profit taking. What we saw then was a seriously strong and resilient Indian market , balancing out short term volatility with long term optimism.  Of course all that said, the market is still looking at some profit taking and global uncertainties hanging over – but overall the outlook is still very much positive for equities and economic growth. Investors are told to keep an eye out in the coming weeks for global cues , trade developments and also corporate earnings – while also keeping an ear open for opportunities in sectors that are export driven and infrastructure.