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Budget 2026: Market Tumbles Amid Pre-Budget Jitters
22 Jan
Summary
- Indian stock indices have lost over 3% in January pre-Budget.
- Midcap and smallcap indices show steeper declines of 4.2% and 5.8%.
- Analysts suggest defensive stocks like FMCG and banking for safety.
The Indian stock market is navigating a turbulent period leading up to the Union Budget 2026. Benchmark indices like the BSE Sensex and NSE Nifty 50 have each declined over 3% in January. The downturn is more pronounced in the midcap and smallcap indices, which have fallen 4.2% and 5.8%, respectively.
Geopolitical tensions and concerns over India Inc.'s earnings are contributing to investor apprehension. Analysts suggest a strategy of defensive rotation combined with long-term investments. They are particularly bullish on the banking sector, favoring large lenders, alongside select public sector undertakings (PSUs) and manufacturing companies.
