Benchmark indices retreat after three-day rally
Indian equity benchmarks opened sharply lower on Friday, snapping a three-session winning streak as selling pressure in information technology stocks combined with caution ahead of the Union Budget presentation scheduled for February 1.Fresh foreign fund outflows and weak cues from global equity markets further weighed on investor sentiment during early trade.
Sensex and Nifty open deep in the red
The 30-share BSE Sensex fell 619.06 points to 81,947.31 in opening deals, while the NSE Nifty declined 171.35 points to 25,247.55.IT stocks led the decline, with Tata Steel, HCL Technologies, Infosys, Tata Consultancy Services, NTPC, and Tech Mahindra among the major laggards on the Sensex.
On the other hand, selective buying was seen in Maruti Suzuki India, ITC, Asian Paints, and InterGlobe Aviation.
Budget caution and global cues weigh on sentiment
Market participants remained cautious ahead of the Budget, while geopolitical concerns, volatility in global trade, and movements in crude oil prices added to the pressure. Brent crude slipped 1.39 per cent to USD 69.73 per barrel, offering limited relief amid broader risk-off sentiment.The government’s pre-Budget Economic Survey released on Thursday projected India’s economic growth at 6.8 to 7.2 per cent in the fiscal year beginning April, reinforcing expectations of steady domestic growth despite global uncertainties.
Mixed Asian markets, US equities end lower
Asian markets presented a mixed picture, with South Korea’s Kospi trading higher, while Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng were lower in early trade. US markets closed mostly lower overnight, adding to weak global cues.Institutional activity and previous session performance
Foreign institutional investors sold equities worth Rs 393.97 crore on Thursday, while domestic institutional investors purchased shares worth Rs 2,638.76 crore, according to exchange data.In the previous session, the Sensex had gained 221.69 points, or 0.27 per cent, to close at 82,566.37, while the Nifty rose 76.15 points, or 0.30 per cent, to settle at 25,418.90.
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