Sensex and Nifty slipped ahead of the Union Budget as IT and metal stocks lagged. With global uncertainties and rupee pressure mounting, will the markets bounce back or is volatility set to continue?
Sensex, Nifty pause winning rally as investors turn cautious
New Delhi: Benchmark Indian stock indices ended lower on Friday as investor sentiment turned cautious ahead of the Union Budget presentation in Parliament. Metal and IT stocks were the major drag, reflecting concerns over global growth, currency depreciation, and persistent foreign institutional investor (FII) selling.
The S&P BSE Sensex closed 296.59 points down at 82,269.78, while the NSE Nifty50 slipped 98.25 points to finish at 25,320.65. Investors scaled back positions as uncertainty ahead of budget announcements prompted a cautious approach.
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Among Sensex constituents, Mahindra and Mahindra Ltd was the top gainer, rising 1.38%, followed by State Bank of India at 1.23%, ITC Ltd at 1.11%, Bharat Electronics Ltd at 1.01%, and Hindustan Unilever Ltd at 0.94%.
On the losing side, Tata Steel led the decline with a 4.57% fall. ICICI Bank dropped 2.10%, Power Grid Corporation fell 1.61%, HCL Technologies was down 1.55%, and Tech Mahindra lost 1.29%.
The IT sector underperformed amid concerns over global economic growth and rising U.S. bond yields, which can affect foreign inflows. Metal stocks declined as commodities faced pressure from a stronger U.S. dollar. Precious metals such as gold and silver also fell, reflecting global currency dynamics.
Persistent selling by foreign investors, coupled with a depreciating rupee, further dampened market sentiment. Investors were also weighing geopolitical tensions and global tariff pressures, making the markets sensitive to news ahead of the budget.
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On the global front, markets received temporary relief after a deal to avert the latest U.S. government shutdown. However, attention remains on the upcoming appointment of a new Federal Reserve Chair. A hawkish stance by the Fed could tighten global liquidity, affecting emerging markets including India.
As the Union Budget approaches, investors are keenly awaiting cues on growth support, fiscal discipline, and sector-specific policies. Analysts expect volatility to continue until the budget announcements provide clarity on government spending, taxation, and policy measures.
Overall, Friday’s decline reflects a pause in the recent winning streak of Indian indices, highlighting the cautious sentiment among investors as key domestic and global developments unfold.
Disclaimer: This content is for information only and not financial advice. Market investments involve risk; consult a financial advisor before investing.
