The Indian equity markets posted losses on Friday, amid profit booking due to caution ahead of the Union Budget 2026 on February 1 and weakness in metal stocks. 

At the closing bell, Sensex lost 269 points, or 0.36 per cent, to settle at 82,269. Nifty declined 98 points, or 0.39 per cent, to close at 25,320.

The broader markets showed divergence, with the benchmark indices as Nifty Midcap 100 index lost only 0.17 per cent, while the NSE Smallcap 100 added 0.32 per cent.

On the sectoral front, indices traded mixed, as metals suffered the steepest losses. Nifty Metal fell 5.34 per cent, while IT eased 1.02 per cent. Nifty Media rose 2.07 per cent, while consumer durables gained 1.09 per cent. Nifty FMCG was up 1.41 per cent.

The IT sector lagged due to global growth concerns and higher US bond yields, analysts noted.

Market watchers said that Bank Nifty has reclaimed its falling trendline breakout zone and is now sustaining above its short-term 20-day and 50-day moving averages, indicating improving price structure.

Momentum indicators are also supportive, suggesting an upside bias, with support placed at 59,000 and resistance near 60,400 zone, they added.

The rupee recovered from its lowest level and gained 15 paise to trade at 91.92 against the US dollar, supported by lower crude oil prices in the international market.

Amidst rising geopolitical risks, tariff pressures and persistent FII selling, the Union Budget is being keenly watched for cues on growth support and fiscal discipline.

Markets also remain watchful of the appointment of a new US Fed Chair, as a more hawkish stance from the Federal Reserve could tighten liquidity and weigh on emerging markets.

Markets will remain open on Budget Day on February 1, despite it being a Sunday. As it is a settlement holiday, any shares purchased on January 30 will not be eligible for sale on February 1. Similarly, stocks bought during the Budget Day cannot be offloaded the following day.