Sensex, Nifty Slip on Metal and IT Weakness Ahead of Union Budget

MUMBAI, India — Indian equity markets closed lower on Friday as investors booked profits ahead of the Union Budget 2026 on February 1 and metal stocks came under heavy selling pressure.

At the close, the Sensex fell 269 points, or 0.36 percent, to end at 82,269, while the Nifty declined 98 points, or 0.39 percent, to settle at 25,320.

Broader markets showed a mixed trend. The Nifty Midcap 100 slipped 0.17 percent, while the NSE Smallcap 100 index gained 0.32 percent.

Sectoral performance was uneven, with metal stocks leading the losses. The Nifty Metal index plunged 5.34 percent, while the IT index eased 1.02 percent. In contrast, media stocks advanced, with the Nifty Media index rising 2.07 percent. Consumer durables gained 1.09 percent, while FMCG stocks climbed 1.41 percent.

Analysts said IT stocks remained under pressure due to concerns over global economic growth and elevated U.S. bond yields.

Market participants noted that Bank Nifty has reclaimed its falling trendline breakout zone and is now holding above its short-term 20-day and 50-day moving averages, signaling an improvement in price structure. Momentum indicators are also supportive, suggesting an upside bias, with support seen near the 59,000 level and resistance around the 60,400 zone.

In the currency market, the rupee recovered from its lowest levels and strengthened by 15 paise to trade at 91.92 against the U.S. dollar, aided by softer crude oil prices in the international market.

With geopolitical risks, tariff pressures, and continued foreign institutional investor selling in the background, market participants are closely watching the Union Budget for signals on growth support and fiscal discipline.

Investors are also monitoring developments around the appointment of a new U.S. Federal Reserve chair, as a more hawkish policy stance could tighten global liquidity and pressure emerging markets.

Indian markets will remain open on Budget Day on February 1 despite it being a Sunday. As it is a settlement holiday, shares purchased on January 30 will not be eligible for sale on February 1, and stocks bought on Budget Day cannot be sold on the following trading day. (Source: IANS)