Sensex and Nifty Open on a Positive Note

Domestic equity markets rallied sharply on Monday as concerns over the Securities Transaction Tax (STT) eased. The Sensex surged 943.52 points to close at 81,666.46, while the Nifty gained 262.95 points to settle at 25,088.40. During intraday trade, the Sensex recovered as much as 1,345 points. Market sentiment was buoyed by the Union Budget aligning with market expectations, easing commodity prices, optimism that India–US trade agreement talks may soon reach a resolution and a sharp decline in crude oil prices. This led investors to actively buy blue-chip stocks across oil and gas, banking and automobile sectors.

Brokerage stocks rebound

Shares of stock brokerage firms, which had fallen sharply on Sunday, staged a strong recovery on Monday. Angel One shares ended nearly 4% higher on the BSE at ₹2,405.05. Although these stocks initially traded in the red along with the broader indices, they quickly turned positive as the market regained momentum.

Meanwhile, selling pressure from Foreign Portfolio Investors (FPIs) continued in the domestic market. FPIs withdrew ₹35,962 crore from Indian equities last month and cumulative outflows over the past year stood at ₹1.66 trillion, according to data.

PFC–REC merger moves forward

Government-owned non-banking finance companies Power Finance Corporation (PFC) and its subsidiary Rural Electrification Corporation (REC), which play a key role in financing the power sector, are set to be merged. Finance Minister Nirmala Sitharaman announced in the Union Budget on Sunday that the two entities will be restructured. As part of this process, the government is considering the merger of REC into PFC, according to reliable sources. Both companies are crucial in funding power generation, transmission, and distribution projects across the country.