Sensex, Nifty edge lower weighed down by metal, IT stocks ahead of Union Budget 2026

Indian stock markets closed in negative territory on Friday as investors locked in profits ahead of the upcoming Union Budget 2026 scheduled for February 1. Weakness in metal stocks further contributed to the downward trend.

The benchmark Sensex dropped 269 points (0.36%) to close at 82,269, while the Nifty fell 98 points (0.39%) to settle at 25,320.

Midcap and smallcap stocks showed mixed performance compared to the main indices. The Nifty Midcap 100 index declined 0.17%, while the Smallcap 100 index edged up by 0.32%.

Sectoral indices presented a varied picture during Friday’s trading session. Metal stocks faced significant pressure, with the Nifty Metal index plunging 5.34%. Technology stocks also retreated, with the IT index dropping 1.02%. The media sector performed strongly with a 2.07% gain, while consumer durables and FMCG indices rose 1.09% and 1.41% respectively.

Analysts noted that technology stocks remained under pressure due to persistent concerns about global economic growth and elevated US Treasury yields.

The banking sector showed promising technical signals, with the Bank Nifty index sustaining above its critical moving averages. Technical experts observed that the index has stabilized above both its 20-day and 50-day moving averages, signaling improved momentum. Support levels are currently placed at 59,000, with resistance anticipated near the 60,400 mark.

India’s currency strengthened by 15 paise against the US dollar, trading at 91.92, supported by declining global crude oil prices.

Market participants remain focused on the upcoming Union Budget amid heightened geopolitical tensions, inflationary pressures, and continued foreign institutional investor outflows. Investors are particularly watchful of fiscal discipline measures and growth-oriented policies in the budget announcement.

Globally, markets are monitoring the pending appointment of the next US Federal Reserve Chair, as indications of a more aggressive monetary policy stance could tighten global liquidity conditions and potentially affect emerging markets.

Trading will continue on Sunday, February 1 despite it being a non-working day to accommodate the Union Budget announcements. Special settlement arrangements will be in effect, with shares purchased on January 30 becoming eligible for sale only after February 1. Similarly, securities acquired on Budget Day cannot be liquidated the following trading session.

Source: IANS