Opening Bell: Sensex, Nifty trade flat at open ahead of Budget 2026 as markets brace for policy cues

Share Market Today: Sensex, Nifty on Budget Day

• Markets opened flat ahead of Union Budget 2026, with investors cautious on risks
• Metal stocks fell sharply, dragging Nifty Metal index down over 4 percent
• Budget focuses on fiscal discipline, capital gains tax, and PSU announcements

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Indian equity benchmarks opened largely flat on Sunday as investors turned cautious ahead of the Union Budget 2026, with traders unwilling to take aggressive positions before clarity emerges on fiscal priorities, tax policy and capital expenditure plans. Volatility remained elevated as markets prepared for sharp intraday swings once the Budget announcements begin.

At 09:18 am, the BSE Sensex was down 12 points, or 0.01 percent, at 82,258, while the NSE Nifty slipped 30 points, or 0.11 percent, to 25,291. Market breadth was mildly positive, with 1,374 stocks advancing against 1,157 declines, reflecting selective positioning rather than broad-based risk-taking.

Markets entered Budget Day after ending lower in the previous session, with investors wary of global uncertainty and recent volatility. Analysts said Budget 2026 is expected to focus on manufacturing-led growth, capital expenditure and fiscal prudence, while the Street will watch closely for any changes to capital gains taxation, export incentives and PSU-related announcements.

Metal stocks came under sharp pressure in early trade, dragging the Nifty Metal index down over 4 percent, as heavyweight stocks such as Hindalco, Tata Steel and JSW Steel declined. IT stocks also remained weak, while selective buying was seen in pharma, auto and banking names. Sun Pharma, Bharat Electronics and Bajaj Auto featured among the top gainers, while Hindalco and Tata Steel led the losers.

According to VK Vijayakumar, chief investment strategist at Geojit Investments, the Budget’s market impact will hinge on fiscal discipline and capital market cues. He said a fiscally prudent, growth-oriented Budget would be positive for sentiment, adding that any move to ease long-term capital gains tax norms or provide clarity for foreign investors could trigger a rally. Defence, exports and PSU-related announcements are expected to remain in focus.

Technical analysts flagged the 25,100-25,200 zone on the Nifty as a key support area, while a sustained move above 25,450-25,500 would be needed to revive upside momentum. With India VIX up nearly 4 percent, traders expect heightened volatility as Budget proposals are digested.

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