Indian equity benchmarks concluded Friday's trading session in negative territory, putting an end to a three-day winning streak as market participants opted to secure profits in anticipation of the upcoming Union Budget scheduled for February 1. The benchmark BSE Sensex finished at 82,269.78, registering a decline of 296.59 points or 0.36%. Simultaneously, the NSE Nifty settled at 25,320.65, dropping 98.25 points or 0.39%.
Market Sentiment Under Pressure
Overall market sentiment faced headwinds from multiple factors, including pronounced weakness in metal and information technology (IT) stocks. Additional pressure stemmed from fresh outflows of foreign institutional investments and a depreciating Indian rupee against major global currencies. This combination of elements contributed to the cautious and profit-booking approach observed among investors.
Notable Gainers and Losers
Despite the broader market downturn, several prominent stocks managed to post gains. Among the Nifty 50 constituents, Nestle India emerged as a top performer, climbing 3.46% to reach ₹4,450. Tata Consumer Products followed with a gain of 2.42%, closing at ₹2,670, while Apollo Hospitals Enterprise advanced 2.35% to settle at ₹16,000.
Within the Sensex basket, Mahindra & Mahindra (M&M) led the gainers, rising 1.41% to ₹4,740. State Bank of India (SBI) increased by 1.03% to ₹1,110, and ITC added 1.12%, closing at ₹355.
Stocks Facing Significant Declines
On the losing side, metal stocks were particularly hard-hit. Hindalco Industries plummeted 6.01% to ₹962.60, and Tata Steel dropped 4.55% to ₹193.13. Coal India also witnessed a substantial decline of 3.30%, ending at ₹440.75.
In the banking sector, ICICI Bank fell 2.07% to ₹1,355. Major IT companies contributed to the downturn as well, with HCL Technologies declining 1.52% to ₹1,696 and Tech Mahindra dropping 1.44% to ₹1,743.
Key Factors Influencing Market Movement
The pre-Budget profit-booking activity reflects typical market behavior as investors adjust portfolios ahead of major policy announcements. The weakness in metal stocks can be attributed to global commodity price fluctuations and demand concerns. The underperformance of IT stocks aligns with ongoing global macroeconomic uncertainties affecting the technology sector.
Foreign institutional investor outflows and rupee depreciation further exacerbated the downward pressure, indicating cautious sentiment among international investors regarding emerging markets like India in the current economic climate.
Market analysts suggest that while short-term volatility is expected around budget announcements, the fundamental long-term outlook for Indian equities remains positive, supported by domestic economic growth and structural reforms.
