The Indian benchmark indices declined on Friday ahead of the Union Budget 2026 as the Sensex remained flat to close at 82,269.78 and Nifty fell over 98 points to end trade at 25,320.65.
Previously during the morning session, the BSE Sensex rang the opening bell near 82,200, nosediving almost 400 points, while the NSE Nifty50 started trading today a little below 25,250, taking a hit of more than 150 points around 9:15 AM.
The decline came amid weak global cues and heightened uncertainty ahead of the February 1 Budget presentation, making traders reluctant to take aggressive positions in the last full trading session before the key policy event.
Pre-Budget Headwinds And Tailwinds For Markets
As Budget Day approaches, equity markets are navigating a mix of global headwinds and domestic positives. Geopolitical tensions continue to weigh on global trade, with recurring threats of tariff weaponisation by former US President Donald Trump adding to uncertainty.
A rise in Brent crude prices to near USD 70 per barrel has emerged as a headwind for India’s macroeconomic outlook, particularly for sectors that rely heavily on oil as an input.
Economic Survey Offers Growth Comfort
These pressures, however, are likely to be offset by the positive signals from the government’s pre-Budget Economic Survey, which has projected GDP growth of 6.8 to 7.2 per cent for FY27.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the growth outlook could provide support to market sentiment. “The steady decline in FPI outflows during the last two days indicates a possible change in FPI strategy,” he added.
The Economic Survey, tabled on Thursday, reaffirmed India’s position as the world’s fastest-growing major economy, despite trade-related risks and heightened global volatility.
Global Market Cues Mixed
Asian markets presented a mixed picture. South Korea’s Kospi traded higher, while Japan’s Nikkei 225, China’s Shanghai SSE Composite and Hong Kong’s Hang Seng indices were trading lower. US markets ended mostly in the red on Thursday.
Crude Prices And Institutional Flows
Brent crude, the global oil benchmark, declined 1.39 per cent to USD 69.73 per barrel.
On the institutional front, foreign institutional investors (FIIs) sold equities worth Rs 393.97 crore on Thursday after a one-day pause, exchange data showed. Domestic institutional investors (DIIs), however, remained net buyers, purchasing equities worth Rs 2,638.76 crore.
