Budget 2026: Cautious Market Moves and Expert Outlook Before FM’s Announcements
Investors, policymakers, and citizens are closely tracking developments as Finance Minister Nirmala Sitharaman prepares to present her budget speech
The Union Budget 2026 has set the stage for one of the most closely watched economic events of the year. Ahead of Finance Minister Nirmala Sitharaman’s address, markets are trading cautiously, with investors balancing optimism against global and domestic uncertainties.
The environment in the markets reflects a mix of cautious optimism and nervous anticipation, with traders balancing domestic priorities against global uncertainties.
Economists are actively analysing their expectations for the budget. Sectoral movements are mixed, with pharma and banking stocks leading gains while IT and metals remain under pressure.
Even if the numbers fluctuate, as of this morning (Feb 1, 2026, Budget Day trading session), the BSE Sensex is at 82,388.97 points, up 119.19 points (0.14%), while the NSE Nifty 50 is at 25,333.75 points, up 13.10 points (0.05%). Markets are trading cautiously ahead of Finance Minister Nirmala Sitharaman’s Union Budget speech.
Analysts warn of sharp swings as investors react to Budget announcements. Nifty holding above 25,250 is seen as crucial support. Precious metals (gold & silver) remain weak after recent sell-offs, adding to cautious sentiment.
The rupee has weakened close to 92 against the USD, adding to investor caution. Taxation, spending priorities, and the fiscal roadmap will directly influence intraday moves. Relief for middle-class taxpayers, infrastructure push, or reforms could swing banking, FMCG, and infrastructure stocks.
Sensex and Nifty are slightly positive but trading nervously, with pharma and banks leading gains, while metals and IT drag. The real action will unfold once the Budget speech begins.
Analysts note that India’s budget strategy will need to account for these external pressures while sustaining domestic momentum.
During the day, stock indices and sectors kept changing every few minutes, showing how unsure investors were.
It emphasizes how Budget 2026 is not just a financial statement but a strategic document expected to redefine India’s economic path in the year ahead
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