Mumbai: Indian benchmark indices ended higher on Friday, halting a three-week losing streak as investors pinned hopes on the upcoming Union Budget 2026-27 set for February 1, expected to deliver growth-boosting measures amid global headwinds. According to sources, the BSE Sensex surged 623 points or 0.76% to settle at 82,270, while the Nifty 50 climbed 193 points or 0.74% to 26,328.55, marking the first weekly gain since mid-January.
Sources said the rebound erased early losses triggered by FII outflows exceeding ₹32,000 crore this month and coupled with geopolitical tensions from US tariff threats under President Trump. Banking and metal stocks headed the rally: HDFC Bank rose 1.2%, NTPC jumped 4.6% on nuclear project deals with Rosatom and EDF, and Power Grid gained 2.8%. Midcaps outperformed with Nifty Midcap 100 up 1.66%, reflecting broad participation despite 70% Nifty 500 stocks in red for January.
Sources said analysts attributed the positivity to pre-Budget positioning, anticipating tax relief, capex hikes for infrastructure, and rural sops to check inflation. “Markets are pricing in fiscal prudence post-Q3 earnings; selective recovery likely if Budget avoids populism,” said Motilal Oswal’s Siddhartha Khemka. Domestic funds offset FII selling, with DIIs net buyers of ₹15,000 crore weekly.
January’s 3.46% Sensex dip — from peaks near 86,000 — stemmed from US-EU trade spats and NATO strains, but Friday’s close above key supports signals resilience. Nifty Bank hit 60,150 (up 0.74%), buoyed by credit growth outlook.
