Indian equity benchmarks began Friday’s session on a weak note, extending the cautious mood on Dalal Street ahead of Budget 2026. The Nifty 50 slipped sharply at the open, while the Sensex also declined, tracking weakness in global markets and investor nervousness over key policy announcements scheduled for the week.

Market experts said the early sell-off was largely in line with global cues. Weakness in technology stocks overseas, subdued Asian markets and rising geopolitical concerns weighed on risk appetite. Fears of a wider regional conflict following reports of a potential U.S. military intervention in Iran further added to the cautious tone.

Despite near-term headwinds, analysts highlighted that India’s growth outlook remains supportive. The Economic Survey projects GDP growth of 6.8% to 7.2% in FY27, with moderate inflation, suggesting resilient earnings growth over the medium term.

The Nifty traded in a narrow range of 25,200–25,300 in early deals, holding above the key support zone of 25,160–25,200, which coincides with its 200-day exponential moving average. Market participants said the index remains range-bound, with buying emerging on declines but upside capped until clarity emerges from the Budget.

While volatility is expected to persist in the near term, analysts noted easing foreign portfolio investor outflows and improving export prospects as potential positives. Traders remain defensive for now, awaiting the government’s fiscal roadmap and policy signals that could determine the next directional move.