Mumbai, January 31 (IANS). Before the Union Budget 2026-27, the Indian stock market registered a gain of about 1 percent this week. However, there was a lot of volatility in the market throughout the week and the market trend remained cautious but positive due to mixed global cues and rising geopolitical tensions.
At the end of the week, the risk appetite of investors appeared to be weakening. The market witnessed a decline in the last trading session due to continuous selling by foreign investors (FIIs) and weakness of the rupee.
Nifty rose 1.09 percent during the week, but on the last trading day it slipped 0.39 percent and closed at 25,320. At the same time, Sensex fell 296 points or 0.36 percent and closed at 81,537, although it gained 0.90 percent in the entire week.
This week, a mixed trend was seen in sector based indices. Consumer services and hardware technology stocks were the biggest losers and fell by 2.5 to 3.7 percent. Apart from this, FMCG, media and software stocks also recorded a decline of more than 1 percent.
On the contrary, metal, oil and gas stocks were the top gainers of the week and gained more than 2 per cent, although the Nifty Metal index fell more than 5 per cent in the last trading session. Profit booking was seen in IT stocks due to strong dollar, concerns over global liquidity and uncertainties related to the US Fed Chairman.
There was weakness in select stocks due to increasing competition in auto and beverage sectors also.
Talking about broad markets, better performance was seen this week. Nifty Midcap 100 recorded a rise of 2.25 percent and Nifty Smallcap 100 recorded a rise of 3.2 percent.
At the beginning of the week, the market environment was weak due to new tariff-related concerns and mixed corporate results, but positive expectations regarding India-EU trade agreement supported trade-related sectors.
At the same time, the favorable economic survey that came in the middle of the week increased confidence in the market and expectations of strong economic growth and controlled inflation in the financial year 2026-27 were expressed, which increased the confidence of investors.
Analysts say that in the coming days the market will mainly depend on major events. At the domestic level, the Union Budget will be the biggest factor which will decide the direction of the market.
According to experts, if there is support from government policies then the sectors related to the economy can remain strong. At the same time, IT and export related stocks may remain sensitive to global economic signals in future also.
–IANS
DBP/