Indian equities logged a solid weekly performance, rising around 1 percent in the lead-up to the 2026-27 federal budget. Amid swings from mixed global cues and geopolitical headwinds, the overall sentiment stayed guardedly upbeat.
Risk aversion surfaced at week’s end. FII selling pressure and rupee slides culminated in a Friday pullback.
For the week, Nifty climbed 1.09 percent, closing 0.39 percent lower at 25,320. Sensex dropped 0.36 percent (296 points) to 81,537, with a net 0.90 percent gain.
Sector-wise, consumer services and hardware technology bore the brunt, slumping 2.5-3.7 percent. Losses exceeded 1 percent in FMCG, media, and software.
Metals, oil & gas stole the show with 2 percent+ advances, reversing late with Nifty Metal down over 5 percent. IT stocks trimmed gains on strong dollar trends, liquidity anxieties, and Fed chair uncertainties.
Select autos and beverages weakened on rivalry. Mid and smallcaps thrived, Nifty Midcap 100 +2.25 percent, Smallcap 100 +3.2 percent.
Tariff fears and mixed earnings dampened the start, countered by India-EU agreement optimism aiding trade sectors. Mid-week survey projecting robust FY26-27 growth and stable prices spurred buying.
Market watchers emphasize the budget’s pivotal role. Favorable policies could sustain economic sectors’ strength, while global factors challenge IT and exports.