Indian equity markets opened on a muted note on Sunday during the special trading session, as investors chose to stay on the sidelines ahead of the Union Budget 2026. With key policy announcements imminent, market participants avoided aggressive bets, anticipating heightened volatility once the Budget speech begins.
In early trade, the BSE Sensex was hovering around the flat line, while the NSE Nifty 50 also traded marginally lower, reflecting a wait-and-watch approach. Market breadth remained slightly positive, indicating selective stock-specific buying rather than broad-based participation.
The cautious opening comes after markets ended the previous session on a weak note, weighed down by global uncertainties and recent volatility. Traders and investors are closely tracking the Budget for clarity on the government’s fiscal priorities, capital expenditure roadmap, and tax-related announcements.
Sectorally, metal stocks were under notable pressure, dragging the metal index sharply lower in early trade. Shares of major metal producers such as Hindalco, Tata Steel and JSW Steel declined amid concerns over global demand and pricing pressures. IT stocks also remained subdued, while selective buying was seen in pharma, auto and banking stocks.
Stocks such as Sun Pharma, Bharat Electronics and Bajaj Auto attracted early interest, while heavyweights from the metal space featured among the top laggards.
Market experts believe expectations from Budget 2026 are relatively measured, especially on the taxation front, as significant income tax relief was already announced in the previous Budget. Any incremental changes to capital gains taxation, incentives for manufacturing exports or clarity on PSU-related reforms could influence sentiment during the session.
Investors are also watching closely for announcements related to higher capital expenditure, defence spending, and progress on disinvestment and PSU bank consolidation. These themes are expected to drive sector-specific action in the days ahead.
The unusual Sunday trading session has added an extra layer of caution, as Budget Day historically sees sharp intraday swings. Analysts say meaningful market direction is likely to emerge only after the Budget speech begins and policy details are digested.
With volatility expected to remain elevated throughout the day, investors are bracing for swift market reactions as the government outlines its economic priorities for the year ahead.