Mumbai: Equity benchmark indices Sensex and Nifty ended lower on Friday, snapping a three-day rally, due to heavy selling pressure in metal, IT and commodity stocks as investors booked profits at higher levels ahead of the Budget 2026-27.
However, buying on select blue-chip counters restricted the sharp fall in domestic equities amid prolonged weakness in the rupee, traders said.
As a bearish trend gripped the street, the 30-share BSE Sensex declined 296.59 points, or 0.36 per cent, to settle at 82,269.78. During the day, it tumbled 625.34 points or 0.75 per cent to 81,941.03.
A total of 2,424 stocks advanced while 1,783 declined and 160 remained unchanged on the BSE.
The 50-share NSE Nifty dropped 98.25 points or 0.39 per cent to end at 25,320.65 in a volatile session.
“Indian equity markets remained volatile ahead of the Union Budget, with benchmark indices dragged lower by weakness in IT and metal stocks. The IT sector lagged due to global growth concerns and higher US bond yields, while gold and silver declined amid a stronger dollar.
“Persistent FII selling and continued rupee depreciation kept market sentiment cautious,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
With geopolitical risks and global tariff pressures rising, the Union Budget is keenly awaited for cues on growth support and fiscal discipline, he added.
Among the Sensex firms, Tata Steel suffered the most, tanking by 4.57 per cent. ICICI Bank, Power Grid, HCL Tech, Tech Mahindra, Infosys and Kotak Mahindra Bank were also among the laggards.
Mahindra & Mahindra, State Bank of India, ITC and Bharat Electronics were among the gainers.
“Indian equity markets traded with a weak and cautious bias, retreating from recent highs amid aggressive selling in metal and IT stocks. Mixed cues from overseas markets, along with persistent weakness in the rupee, capped intra-day recovery attempts.
“Overall, sentiment remained cautious, with market participants balancing pre-Budget positioning against external headwinds,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
Among sectoral indices, metal tanked 5.12 per cent, commodities (2.56 per cent), oil & gas (0.88 per cent), energy (0.87 per cent), BSE Focused IT (0.86 per cent) and BSE Private Banks Index (0.63 per cent).
Telecommunication jumped 2.17 per cent, FMCG (1.48 per cent), healthcare (1.05 per cent), capital goods (1 per cent), consumer discretionary (0.87 per cent) and consumer durables (0.85 per cent).
Indian stock markets will hold a special session on Sunday for Budget 2026-27.
India’s economy is projected to grow by 6.8-7.2 per cent in the fiscal year starting April, the government’s pre-Budget Economic Survey said on Thursday, reaffirming the country’s status as the world’s fastest-growing major economy despite trade risks and global volatility clouding the outlook.
In Asian markets, South Korea’s Kospi settled higher, while Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended lower.
Markets in Europe were quoting higher.
US markets ended mostly lower on Thursday.
Foreign institutional investors offloaded equities worth Rs 393.97 crore on Thursday after a day’s breather, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 2,638.76 crore.
Brent crude, the global oil benchmark, dropped 0.88 per cent to USD 70.09 per barrel.
On Thursday, the Sensex climbed 221.69 points or 0.27 per cent to settle at 82,566.37. The Nifty edged higher by 76.15 points or 0.30 per cent to end at 25,418.90.
