SGX Nifty February 2026 futures increased by 10 points, indicating a slightly optimistic beginning for the Nifty 50 today.
Brent crude prices dropped over 3% on Monday following comments from US President Donald Trump, who indicated that Iran was “seriously talking” with Washington, suggesting a potential reduction in tensions with the OPEC member. The remarks alleviated concerns regarding a possible military action that had previously driven oil prices to their highest levels in several months.
Institutional Flows:
On 1 February 2026, provisional data indicated that foreign portfolio investors (FPIs) divested shares amounting to Rs 588.34 crore, whereas domestic institutional investors (DIIs) were net sellers totaling Rs 682.73 crore in the Indian equity market. The foreign institutional investors divested shares amounting to Rs 38740.12 in January. This comes after their cash sales of Rs 34,349.62 crore in December and Rs 17,500.31 crore in November.
Global Markets:
The US Dow Jones index futures are presently down by 190 points, indicating a sluggish start for US stocks today. Asian equities experienced a decline on Monday as investors processed new private data regarding China’s factory activity for January, while gold continued its downward trend following last week’s decrease. In January, a private survey indicated that China’s manufacturing momentum gained strength, as producers increased output and expedited shipments in anticipation of the upcoming Lunar New Year holiday. The RatingDog China General Manufacturing PMI, compiled by S&P Global, increased to 50.3 in January, compared to 50.1 in December. Given that values exceeding 50 indicate growth while those below suggest a decline, the most recent figure reflects a slight enhancement. The index recorded its most robust performance since October, when it was at 50.6.
In the US, stocks closed lower on Friday, with technology shares remaining under pressure, despite a general positive reception to President Donald Trump’s selection of Kevin Warsh as the upcoming Federal Reserve chair. Even with the fluctuations and uneven trading towards the end of January, the S&P 500 successfully finished the month on a positive note. On Friday, the index experienced a decline of 0.43%, marking its third consecutive decrease. The Dow Jones Industrial Average decreased by 0.36%, while the Nasdaq Composite faced a more significant drop of 0.94%.
Warsh’s nomination eased concerns regarding the Fed’s autonomy, considering his previous role as a central bank governor and his strong stance on inflation. Although he is anticipated to support lower interest rates soon, aligning with Trump’s preferences, the markets perceive him as an individual who is likely to uphold policy credibility rather than merely follow directives from the White House.
Domestic Market:
The benchmark equity indices experienced a significant decline during the special trading session on Sunday after the Union Budget 2026 was presented by Finance Minister Nirmala Sitharaman. Although the address was generally supportive of market conditions at the broader level—upholding the fiscal deficit trajectory at 4.4% for FY26 and 4.3% for FY27, increasing capital expenditure to approximately Rs 12.2 lakh crore, and reaffirming a downward trend in the debt-to-GDP ratio—the favorable aspects were eclipsed by a significant drawback for the markets.
The significant rise in Securities Transaction Tax on derivatives has been identified as the main catalyst for the sell-off. The STT on futures has been adjusted from 0.02% to 0.05%, and the levy on options has been elevated to 0.15%. The action triggered a significant unwinding in equities associated with the capital market sector, as brokerages, exchanges, and other high-beta F&O counters faced the most intense selling during the unique special session. The S&P BSE Sensex dropped 1,546 points, reflecting a decline of 1.88%, closing at 80,722.94. The Nifty 50 index fell by 495.20 points, reflecting a decrease of 1.96%, closing at 24,825.45.