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Indian equity markets opened on a weak note on Friday as investors turned cautious ahead of the Union Budget, snapping a three-day winning streak. Despite a positive Economic Survey outlook, traders chose to book profits and cut risk, leading to early losses in benchmark indices. Around 9:30 am, the Sensex was trading 516 points lower at 82,049.94, while the Nifty50 slipped nearly 193 points to 25,226.15.
The decline was led by heavy selling in metal and IT stocks, while pressure was also visible in the broader market. Analysts said near-term concerns such as foreign investor selling, a weakening rupee and global uncertainties overshadowed optimism around India’s medium-term growth prospects. Experts noted that rising crude oil prices and geopolitical tensions are adding to market volatility ahead of key policy announcements.
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Foreign portfolio investor (FPI) outflows remained a major drag, with overseas investors selling equities worth over ₹43,600 crore so far in January. Meanwhile, the rupee hovered near record lows against the dollar, further dampening sentiment. Midcap and smallcap stocks saw sharper losses as investors reduced exposure before Budget Day. Overall, market participants remain watchful, awaiting clarity from the Union Budget and cues from global developments.