Mumbai, Feb. 2 -- The bloodbath in the markets on budget day was surprisingly cut short on Monday, as investors stepped in to bottom-fish and buy beaten-down stocks, especially those of blue chip companies that are part of benchmark indices.

With much of the budget disappointment already priced in and global cues turning slightly supportive, the benchmarks recovered even as concerns over near-term growth and earnings lingered.

After sliding nearly 3% intraday on Sunday and closing nearly 2% down, the Nifty 50 climbed 1.06% on Monday to close at 25,088.40, and the Sensex rose 1.17% to 81,666.46.

The benchmarks comfortably outperformed the broader market, with Nifty Midcap 100 gaining 0.96%, and Nifty Smallcap 250 rising just 0.56%.

Amo...