Dalal Street remained heavily volatile as investors looked out for the upcoming Union Budget 2026 reveal, scheduled for Sunday. This is the last trading session before the Budget day.

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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, as of 9:15 AM. In the pre-open hour, the Sensex crashed close to 500 points and tested 82K, and the Nifty slipped below 25,300, around 9:05 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.

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Benchmarks Slide After Three-Day Rally

On the 30-share Sensex, Asian Paints, HUL, ITC, Adani Ports, and Sun Pharma stood among the gainers. Meanwhile, the laggards included, Tata Steel, HCL Tech, Infosys, NTPC, and TCS.

In the broader markets, the Nifty Next50 slipped 0.66 per cent, dominating a sea of red. Sectorally, the Metal index stood out with gigantic losses of 3.84 per cent. On the other hand, the FMCG index climbed a little over 1 per cent.

The sell-off erased part of the gains logged over the past three sessions, during which domestic equities had recovered on the back of positive global cues and optimism triggered by the Economic Survey.

Budget, Oil Prices And Global Risks In Focus

Market participants remain focused on multiple cross-currents ahead of the Budget. “As we near Budget Day, there are both headwinds and tailwinds for the market. Geopolitical issues continue to plague global trade with continuous threats of tariff weaponisation by Trump,” said V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.

He added that the recent spike in Brent crude prices to near $70 per barrel is a headwind for India’s macroeconomic outlook and for industries with high oil input costs. However, these pressures could be partly offset by the positive signals from the Economic Survey, which projected GDP growth of 6.8–7.2 per cent in FY27.

Vijayakumar also noted that the steady decline in foreign portfolio investor (FPI) outflows over the past two sessions may point to a possible shift in FPI strategy.

Economic Survey Offers Supportive Outlook

India’s economy is projected to grow by 6.8-7.2 per cent in the fiscal year beginning April, according to the government’s pre-Budget Economic Survey released on Thursday. The Survey reaffirmed India’s position as the world’s fastest-growing major economy, even as trade risks and global volatility cloud the external environment.

Global Markets And Institutional Flows

Asian markets presented a mixed picture. South Korea’s Kospi was trading higher, while Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng index were quoted lower. US equities ended mostly in the red in the previous session.

In the commodities market, Brent crude, the global oil benchmark, slipped 1.39 per cent to $69.73 per barrel.

On the institutional front, Foreign Institutional Investors (FIIs) turned net sellers again on Thursday after a brief pause, offloading equities worth Rs 393.97 crore, according to exchange data. Domestic Institutional Investors (DIIs), however, continued to provide support, buying shares worth Rs 2,638.76 crore.

Notably, Indian equity markets extended their winning streak for a third straight session on Thursday, with benchmarks Sensex and Nifty ending higher after recovering sharply from early losses. A rally in Larsen & Toubro, supportive global cues and optimism stemming from the Economic Survey’s growth projections helped markets close in the green.