The Indian equity benchmarks ended Friday’s trade in negative territory, with the Sensex declining 296.59 points (0.36%) to 82,269.78 and Nifty slipping 98.25 points (0.39%) to 25,320.65. This marked a cautious close as investors adopted a wait-and-watch approach before the upcoming budget.
Leading the decline was the metal sector, where the Nifty Metal index plummeted 5.21%. Commodities lost 2.13%, IT shed 1.03%, PSE 0.90%, and services 0.64%. These losses highlighted vulnerabilities in cyclical sectors amid global commodity pressures.
Defying the trend, media jumped 1.85%, defence rose 1.43%, FMCG gained 1.37%, consumer durables 1.08%, realty 0.84%, and auto 0.73%. Broader markets were patchy: one smallcap index fell 0.19% to 58,432, while another climbed 0.32% to 16,879.10.
Sensex top performers were M&M, SBI, ITC, BEL, HUL, Titan, Maruti Suzuki, Asian Paints, Axis Bank, Sun Pharma, and Adani Ports. On the flip side, Tata Steel, ICICI Bank, Power Grid, HCL Tech, Tech Mahindra, Infosys, Kotak Mahindra Bank, Trent, and TCS were the notable decliners.
Analysts pointed to pre-budget volatility and aggressive selling in metals as key drivers. A firmer US dollar triggered sharp drops in precious metals, adding to the woes. ‘The market is navigating uncertainty,’ noted a veteran trader. ‘Budget policies on capex and taxes will be pivotal.’
Internationally, the US shutdown avoidance deal eased some tensions, yet markets remain wary of Fed leadership changes. Tighter policy could crimp liquidity flows to EMs, pressuring Indian stocks further.
Trading opened weak, Sensex down 0.54% at 82,100 and Nifty 0.62% lower at 25,261 early on. The session saw intraday swings, but selling pressure dominated. Investors now look to budget day for directional cues, with focus on infra spending, rural economy boosts, and tax reforms.