After opening the day on a negative note, the Indian benchmark continued its downtrend as the session progressed, eventually closing more than 300 points lower.

India benchmark equity indices, Sensex and Nifty, traded lower on Monday, tracking weak cues from Asian markets, as concerns over a broader trade war intensified following tariffs on Canada, Mexico, and China by US President Donald Trump.

At the closing bell, the BSE Sensex closed lower by 319 points (down 0.4%).

Meanwhile, the NSE Nifty closed 122 points lower (up 0.5%).

M&M, Wipro, Bajaj Finserv are among the top gainers today.

ONGC, Coal India, L&T on the other hand, were among the top losers today.

The GIFT Nifty was trading at 23,421, down by 146 points at the time of writing.

The BSE MidCap index ended 0.9% lower and BSE SmallCap index ended 1.8% lower.

Sectoral indices were trading mixed on Thursday with stocks inthe  IT sector and the consumer durables sector witnessing buying. Meanwhile, the stocks in the power sector and energy sector witnessing selling pressure.

The rupee is trading at 87.16 against the US$.

Gold prices for the latest contract on MCX are trading 0.6% higher at Rs 82,777 per 10 grams.

Meanwhile, silver prices were trading 0.5% higher at Rs 93,665 per 1 kg.
 

Affordable Housing Stocks Fall 

In news, Shares of affordable housing finance companies, such as Housing and Urban Development Corporation Ltd (HUDCO) and Can Fin Homes, took a significant hit on Monday following the Union Budget 2025, which failed to meet market expectations for increased capital expenditure in the sector.

The government earmarked Rs 11.21 trillion (tn) for capital expenditure in FY26, marking a modest 0.9% increase from the previous year. Analysts had hoped for a larger allocation to bolster the affordable housing segment.

There were also high hopes that the government would revise home loan interest deduction limits to offer relief to buyers and stimulate demand. However, the lack of any changes in this area further weighed on market sentiment, according to analysts.
 

Why Metro Brands Share Price is Rising

Moving on to news from the retailing sector, Metro Brand Limited's shares jumped over 7% on Monday, 3 February, marking their largest single-day gain in seven months. This surge followed the Union Budget announcement over the weekend, which included incentives for the footwear industry and changes to income tax slabs for the middle class.

On Saturday, 1 February, a number of footwear brands saw an immediate increase in share prices after the Budget revealed a government-backed scheme aimed at boosting the footwear and leather sectors in India.

This initiative is expected to generate significant employment opportunities and stimulate economic growth, focusing on enhancing productivity, quality, and competitiveness in the sector, and positioning India as a global manufacturing hub.

Why Railway Stocks are Falling

Moving on to news from the railway sector, shares of railway companies, including IRCTC, RVNL, and IRFC, saw a sharp decline of up to 8% on Monday after the Union Budget for FY26 allocated a capital expenditure (capex) of Rs 2.52 trillion (tn) for Indian Railways, maintaining the same amount as the previous fiscal year.

The lack of new investments or a reform agenda sparked a broad-based sell-off in railway stocks. IRCTC's shares dropped 3.9% to an intraday low of Rs 763.3 on the NSE, marking a 6.1% loss over the past two sessions. IRFC's stock fell 5.5% to Rs 133.45 after opening with a 2.78% decline, bringing its two-day slide to 10.2%.

Rail Vikas Nigam Ltd (RVNL) and Ircon International also saw significant selling pressure, with their stocks falling by 7.3% and 5.7%, respectively. Titagarh Rail Systems dropped 7.7% to Rs 882.2, while Jupiter Wagons fell 7.9% during intraday trading.

The unchanged capex allocation comes at a time when Indian Railways urgently needs substantial funding for infrastructure projects, including track laying, electrification, gauge conversion, signalling, and upgrading rolling stock.

Additionally, the ministry's internal and extra-budgetary resources (IEBR) remained the same at Rs 130 bn for FY26, significantly lower than the Rs 527.8 bn allocated in FY24. IEBR includes funds raised from sources like IRFC for capital investments.
 

Why Cryptocurrencies are Under Pressure.

Moving on, Cryptocurrency markets faced significant losses on Monday, with Bitcoin and Ethereum leading the decline, as investors pulled back from risky assets in response to US President Donald Trump's decision to impose broad tariffs on imports from Canada, Mexico, and China. Bitcoin dropped as much as 6%, falling close to US$ 93,000, while Ethereum saw a massive 27% drop at one point, its largest intraday fall since 2021.

By early afternoon in Singapore, Ethereum had stabilized around US$ 2,500, while Ripple-linked XRP was down 17% at US$ 2.20.

Traders reacted strongly to Trump's weekend tariff announcements, which included a 25% levy on imports from Canada and Mexico and a 10% duty on Chinese goods.

The move, which immediately prompted retaliatory threats from US trading partners, unsettled global markets and fueled risk-off sentiment in the cryptocurrency sector.

This sharp decline marks a notable reversal from the recent optimism surrounding Trump's pro-crypto stance.

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