Indian Markets Rebound After Pre-Budget Corrections

Ahead of the Union Budget on February 1, 2026, a 15-year historical analysis shows pre-Budget corrections often precede post-Budget rebounds in India's Sensex and Nifty. Both indices rallied in the week after the Budget in 11–12 of 15 years (Sensex average +2.10%, Nifty average +2.04%), while mid- and small-caps showed more variable three-month recoveries; fiscal deficit is projected at 4.4% of GDP.