The Indian stock market enters a high-voltage session this Monday, February 2, as investors fully digest the ramifications of Union Budget 2026. Following a volatile special Sunday session, the focus now shifts to institutional long-term positioning on the BSE and NSE. With a massive ₹12.22 lakh crore Capex allocation competing against a surprise hike in Securities Transaction Tax (STT) for F&O, the market is identifying clear winners and losers. From the "Sin Tax" impact on ITC to the massive push in Defence and Textiles, we break down the top 10 stocks to watch today.
On this first full trading Monday after Budget 2026, the Nifty 50 and Sensex are expected to react to the fine print of the Finance Minister’s announcements. While the massive infrastructure outlay is a long-term booster, the immediate sentiment is being driven by tax changes and sector-specific incentives. Investors are particularly tracking the "Orange Economy" push and the aggressive 18% hike in Defence spending.
ITC remains the most watched stock today after the government restructured tobacco taxation. With a projected price hike of nearly ₹55 per pack due to excise duty adjustments, analysts are watching if the company’s pricing power can offset potential volume dips in the premium segment.
The 18% jump in the Defence Capex outlay has put Bharat Electronics (BEL) and Hindustan Aeronautics (HAL) in the spotlight. These stocks are expected to see fresh buying interest as the government accelerates the "Atmanirbhar Bharat" initiative with a focus on indigenous jet engines and drone tech.
The banking sector is reacting to the government's fiscal consolidation path. HDFC Bank and ICICI Bank are in focus as the market assesses liquidity conditions and the impact of the new capital gains tax slabs on domestic mutual fund inflows.
Following the announcement of seven new high-speed rail corridors, Rail Vikas Nigam Limited (RVNL) and IRCON are key stocks to track. Increased budgetary support for the National Infrastructure Pipeline makes these "Capex Kings" top picks for long-term investors.
Budget 2026 introduced a dedicated Textile Export Incentive Scheme. Stocks like Raymond and Welspun Living are likely to see positive momentum as the industry prepares for enhanced global competitiveness and lower import duties on specialized raw materials.
| Stock Name | Key Reason |
|---|---|
| ITC | Restructuring of tobacco excise duty and projected price hikes. |
| BEL | Significant 18% hike in Defence Capex outlay for indigenous tech. |
| HDFC Bank | Reaction to revised Capital Gains tax slabs and fiscal consolidation. |
| RVNL | Allocation for seven new high-speed rail and dedicated freight corridors. |
| Tata Power | New solar rooftop subsidies and green energy transmission focus. |
| Angel One | Impact of 150% STT hike on Futures and 50% hike on Options trading. |
| Raymond | New Textile Export Incentive Scheme and mega textile park plans. |
| Reliance (RIL) | Strategic shift toward Green Hydrogen and electronics manufacturing. |
| NTPC | Proposed partnerships in nuclear energy and grid modernization. |
| Zomato | Introduction of social security frameworks for the gig economy. |
How much was the STT hiked?
The Securities Transaction Tax on Futures has been increased to 0.05%, while the tax on Options has been raised by 50% to curb excessive retail speculation.
Which sector is the biggest winner?
Infrastructure, Defence, and Green Energy (specifically Solar and Hydrogen) are the clear leaders in terms of budgetary allocation and policy support.
What is the new Capex target?
The Finance Minister has set a massive Capital Expenditure target of ₹12.22 lakh crore for FY 2026-27, a significant jump from previous years.
Is there any relief for the Textile industry?
Yes, Budget 2026 introduced new export hubs and reduced import duties on certain technical textiles, benefiting listed players like Raymond and Welspun.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial or investment advice. While we strive for accuracy based on current market data and Budget 2026 announcements, The Sunday Guardian suggests that readers consult with a certified financial advisor before making any investment or money-related decisions. The views expressed here are those of the author and do not necessarily reflect the official policy or position of this publication.
