FX.co ★ Sensex Finishes Lower, Posts Monthly Loss

India's BSE Sensex concluded Friday's session with a 0.4% drop, closing at 82,269.8, thus ending a three-day upward trajectory. This downturn came as investors adopted a cautious stance, opting to secure profits ahead of the impending February 1 Union Budget announcement. Market participants are keenly observing for indications on whether the fiscal approach will prioritize short-term economic stimuli or focus on long-term infrastructure spending in reaction to escalating U.S. protectionism. Market dynamics were further influenced by ongoing foreign capital outflows, a depreciating rupee, mixed corporate earnings, and persistent uncertainties surrounding U.S. trade policies. The metal sector experienced significant selling pressure, erasing much of the 8.5% gains accumulated over the previous three sessions, with Tata Steel seeing a decline of over 5%. However, gains in the FMCG sector, select public sector banks, healthcare, and consumer durables sectors helped mitigate the overall market losses. Key contributors to this resistance included Mahindra & Mahindra (up 1.3%), State Bank of India (up 1.3%), ITC (up 1.1%), Bharat Electronics (up 1.1%), Titan (up 0.8%), and Hindustan Unilever (up 0.6%). For the week, the index saw a 0.9% increase but registered a 3.5% decline for the month of January, marking its second consecutive monthly decrease.