Indian equity markets opened on a weak note on Thursday, ending a two-session rally as the rupee slipped to an all-time low and investors turned cautious ahead of the Union Budget. The S&P BSE Sensex fell 275 points to 82,069.68, while the NSE Nifty 50 declined 48 points to 25,294.75 in early trade.

Market experts said the recent 300-point rise in the Nifty was largely a short-covering move in anticipation of the Budget rather than a shift in underlying sentiment. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that foreign institutional investors continue to maintain a “sell India” strategy, reallocating funds to better-performing global markets.

According to Vijayakumar, unless the Union Budget delivers major announcements capable of attracting foreign inflows, selling pressure from FIIs could persist and weigh on markets. However, he added that markets remain sensitive to positive surprises, such as speculation around a potential US-India trade deal. If announced soon after the India-EU agreement, such a development could significantly improve growth prospects and corporate earnings in FY27, potentially triggering a fresh rally.