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Budget Buzz: Market Cautious as Indices Dip Ahead of Sunday Session
31 Jan
Summary
- Nifty declined 98 points on Friday, ending at 25,320.
- Silver prices saw a record single-day fall of 37% on January 30.
- Markets remain cautious ahead of the Union Budget, presented February 1.
Indian equity markets concluded Friday's trading session with a cautious tone, as the Nifty 50 index fell by 98 points to settle at 25,320. This decline occurred amidst investor apprehension leading up to the Union Budget, scheduled for presentation on Sunday, February 1. Many frontline indices are currently trading below their recent highs, reflecting the prevailing market mood.
Globally, commodity markets witnessed extreme volatility. Notably, spot silver prices experienced a record single-day decline of 37% on January 30. Gold prices also saw a significant drop of up to 12%, influenced by a stronger US dollar and evolving perceptions of Federal Reserve policy. This broad market nervousness suggests a period of consolidation as participants await the Budget's fiscal and economic outlook.
Analysts suggest the Nifty is consolidating near a critical resistance zone and is poised for a decisive move post-Budget. Immediate support for the index is identified at 25,200, while a sustained rise above 25,450-25,500 could signal further upside. Key data points for the upcoming week include auto sales figures, January GST collections, and metal price movements.
