Indian markets enter Monday under pressure after a bruising Budget session that rattled investors and wiped out weeks of gains. The Nifty 50 logged its worst Budget day since 2020, while global cues remain mixed, setting the stage for a cautious and headline driven trade.
Budget shock drags Nifty and Sensex to multi year lows
Indian equities ended Friday deep in the red after a volatile Budget session triggered broad based selling. The NSE Nifty 50 closed at 24,825.45, down 495.20 points or 1.96 percent, marking its sharpest Budget day fall in six years. The index slipped below 24,600 during the session before trimming losses into the close.
The BSE Sensex also saw heavy pressure, ending at 80,722.94 after losing over 1,500 points at its worst. Banking, IT and metal stocks led the decline as investors reacted to Budget proposals, stretched valuations and a risk off mood across global assets.
Intraday volatility spiked sharply, with both frontline indices falling close to 3 percent before some late buying emerged. Market breadth stayed weak through the session, reflecting deep selling beyond index heavyweights.
Key numbers at a glance
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Nifty 50 close 24,825.45
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Day change minus 1.96 percent
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Sensex close 80,722.94
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Worst Budget day since 2020
GIFT Nifty signals cautious positive start
Early indicators suggest a mild rebound attempt at the open. GIFT Nifty was trading around 25,910, up nearly 0.3 percent during early Asian hours, pointing to a slightly positive start for domestic equities.
However, traders remain wary. A single positive open does not erase the damage from Friday, especially after the market violated key short term support levels. Analysts say follow through buying will depend on how institutional investors react and whether global cues stabilize through the day.
Short term levels to watch
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Immediate resistance near 25,000 on Nifty
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Strong support placed around 24,600
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Bank Nifty direction critical for broader market tone
Global markets offer mixed and uneasy cues
Overseas signals remain uneven. US markets were shut over the weekend, but on Friday Wall Street recovered from session lows as bargain hunters stepped in after a sharp selloff tied to concerns around heavy artificial intelligence spending and uncertain returns.
Asian markets, however, opened weaker. Regional equities slipped as investors assessed a stronger dollar and shifting central bank expectations. Nasdaq 100 futures traded lower, while European index futures also pointed to a soft start.
Currency moves added to uncertainty. The Bloomberg Dollar Spot Index steadied after logging its strongest session in months, while the Japanese yen fluctuated following comments from Japan’s leadership suggesting that a weaker currency could help exporters.
Global risk sentiment remains fragile, and Indian markets may struggle to stage a strong rebound unless global cues improve through the day.
Commodities crack as gold sees historic slide
One of the biggest global stories influencing sentiment is the sharp fall in precious metals. Gold extended its steepest decline in over a decade, pulling back sharply from record highs reached earlier in the year.
Spot gold fell as much as 4 percent in early Monday trade, while silver dropped by a similar margin. Silver briefly plunged close to 12 percent in the prior session, marking one of its largest intraday falls on record before stabilizing.
Market participants say the selloff reflects profit booking after an overheated rally, along with shifting expectations around interest rates and the dollar.
Why commodity moves matter for India
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Lower gold prices may ease import pressure
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Metal stocks could stay volatile
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Inflation expectations may adjust
What investors should watch closely today
With volatility elevated, experts advise a disciplined approach. Budget related clarity, global market direction and institutional flows will drive today’s trade more than technical factors alone.
Key triggers during the session include
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Opening trend and sustainability of early gains
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Foreign institutional investor activity
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Movement in banking and IT heavyweights
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Reaction to global commodity prices
For long term investors, analysts continue to stress fundamentals over short term noise. Sharp Budget day falls have historically been followed by consolidation rather than immediate trend reversals.
Retail investors are urged to avoid panic selling and focus on asset allocation, while short term traders should brace for wide swings and manage risk tightly.
The coming sessions will test market confidence, but they may also offer clarity. As India digests Budget signals and global markets search for balance, today’s trade could set the tone for February. What do you think markets will do next? Share your view with fellow investors and join the discussion online.
