In a pre-budget shake-up, Indian stocks closed lower on Friday. The Sensex tumbled 296.59 points or 0.36% to 82,269.78, while Nifty retreated 98.25 points or 0.39% to 25,320.65. Weak global signals set a bearish tone from the opening bell.
Metals stole the spotlight with a brutal 5.21% plunge in the Nifty Metal index, spearheading the downturn. Commodities dropped 2.13%, IT 1.03%, PSE 0.90%, and services 0.64%. This sector-specific rout underscored broader economic anxieties.
Gainers provided some counterbalance: media up 1.85%, defence 1.43%, FMCG 1.37%, consumer durables 1.08%, realty 0.84%, auto 0.73%. Mid and smallcaps were mixed, one index down 109 points (0.19%) at 58,432, the other up 54 points (0.32%) at 16,879.10.
Among Sensex constituents, M&M, SBI, ITC, BEL, HUL, Titan, Maruti Suzuki, Asian Paints, Axis Bank, Sun Pharma, and Adani Ports advanced. Laggards included Tata Steel, ICICI Bank, Power Grid, HCL Tech, Tech Mahindra, Infosys, Kotak Mahindra Bank, Trent, and TCS.
Experts dissected the move: ‘Metal stocks faced intense selling due to dollar strength crushing gold and silver,’ said one. Pre-budget nerves amplified the volatility, with traders eyeing fiscal measures for growth impulses.
On the global front, a US bipartisan deal staved off a shutdown, offering fleeting optimism. However, impending Fed chair nomination keeps sentiments guarded—potential hawkishness might drain EM liquidity, weighing on India.
Markets gapped down, Sensex 444 points off at 82,100 and Nifty 157 points lower at 25,261 by mid-morning. Despite brief recoveries, the close remained subdued. The budget looms large, with hopes pinned on populist sops, defence allocations, and manufacturing push to revive momentum.