Markets Open in Red on Union Budget 2026; Gold, Silver Slide Sharply

Indian equity markets opened lower on February 1 amid heightened volatility ahead of the Union Budget presentation by Finance Minister Nirmala Sitharaman. Benchmark indices slipped in early trade as investors remained cautious, bracing for policy announcements and fiscal cues.

The Sensex dropped 312.62 points (a 0.38% decline), while the Nifty 50 shed 205.10 points, representing a 0.81% fall in initial trading, reflecting pre-budget nervousness and selective profit booking across sectors. Market participants appeared to be pricing in policy continuity rather than sweeping reforms, hence, keeping risk appetite in check at the opening bell.

Also read: Union Budget 2026: All Eyes on Income Tax Relief, Key Announcements

Precious Metals Extend Losses

Commodity markets also opened sharply lower, with precious metals bearing the brunt of selling pressure ahead of the budget speech.

MCX Gold prices opened at ₹1.45 lakh per 10 grams, down nearly 3% from Friday’s close of ₹1.49 lakh per 10 grams.

MCX Silver saw steeper losses, opening at ₹2.74 lakh per kilogram, a decline of 6% compared with the previous close of ₹2.92 lakh per kilogram.

The sharp correction in bullion prices comes amid profit-taking and caution ahead of potential budget-related policy signals, following a strong rally in recent weeks.

Sectors in Focus

On the equity side, investors are closely tracking PSU banks, defence and railway stocks, sectors that have been in focus ahead of the budget due to expectations around capital expenditure and policy support. However, early trade suggested a wait-and-watch approach, with no clear sectoral leadership emerging at the open.

Market volatility is expected to persist through the session as investors react to announcements from the finance minister and reassess sector-specific implications.

Also read: Defence, Railways, PSU Banks in Focus as Sitharaman Presents Budget 2026