MARKETS FALL 1.26% DESPITE REFORMIST BUDGET CUES

MUMBAI: Indian markets ended lower for the sixth straight session even as the Economic Survey presented on Friday set the tone for a reformist budget. However, investors remained anxious ahead of the 1 February Union budget while intensified sell-off in global equities also dented sentiment.

The BSE Sensex slipped 588.59 points or 1.26% to end at 46,285.77. The Nifty fell 182.95 points or 1.32% before closing at 13,634.60. The Sensex lost nearly 8% from the record high of 50,000 in one of the sharpest falls, knocking off over 5% of the benchmark index this week.

Typically, markets remain volatile in the month to the budget. This year, Sensex lost 3% in a month before the budget is presented in parliament while it slipped 4% last year.

Meanwhile, stocks in Asia-pacific were lower in Friday trade, with South Korea’s Kospi leading losses among the region’s major markets. The Kospi fell 3.03%, Nikkei dropped 1.89% while Topix slipped 1.64%. Shanghai composite fell 0.63% and Hang Seng index declined 0.94%.

“Negative indications from the overseas markets abound, mainly against the background of the spread of the pandemic, and stricter lockdowns in larger parts of Europe has not gone well with the market’s perceptions about the future of the economic rebound. The domestic market is awaiting the Union Budget on Monday, and it is quite likely that some positions have been pared ahead of the event,” Joseph Thomas, Head of Research, Emkay Wealth Management said.