Mumbai’s equity benchmarks ended the week on a positive note, climbing nearly 1 percent ahead of the Union Budget for 2026-27. Despite persistent volatility driven by mixed global cues and escalating geopolitical tensions, the market mood remained cautiously optimistic.
Investors appeared to dial back risk appetite toward the week’s close. Continuous selling by foreign institutional investors (FIIs) and a weakening rupee triggered a downturn in the final trading session.
The Nifty 50 advanced 1.09 percent over the week but slipped 0.39 percent to close at 25,320. The Sensex shed 296 points or 0.36 percent, settling at 81,537, even as it posted a weekly gain of 0.90 percent.
Sectoral performance was patchy. Consumer services and hardware technology stocks suffered the steepest declines, dropping 2.5 to 3.7 percent. FMCG, media, and software shares also fell over 1 percent.
In contrast, metal, oil, and gas stocks led the gains with over 2 percent rises, though the Nifty Metal index crashed more than 5 percent in the last session. Profit-taking hit IT shares amid a strong dollar, global liquidity worries, and uncertainties surrounding the US Fed Chair.
Auto and beverage sectors saw selective weakness due to rising competition. Broader markets shone brighter, with Nifty Midcap 100 up 2.25 percent and Nifty Smallcap 100 surging 3.2 percent.
The week started weakly amid tariff concerns and mixed corporate earnings, but optimism around the India-EU trade agreement buoyed trade-related sectors. A favorable economic survey mid-week boosted confidence, projecting robust growth and controlled inflation for FY 2026-27.
Analysts eye the upcoming budget as the key market driver. Supportive government policies could strengthen economy-linked sectors, while IT and export stocks remain vulnerable to global signals.