Indian markets wrapped up the week with modest gains of about 1 percent, setting a positive tone just before the central budget presentation for 2026-27. Volatility lingered throughout, fueled by uneven international signals and rising geopolitical risks, keeping traders on edge yet hopeful.

By Friday, waning investor risk tolerance was evident. FIIs persisted with their sell-off, and rupee depreciation pressured indices lower in the closing trade.

Weekly, Nifty rose 1.09 percent but ended 0.39 percent down at 25,320. Sensex closed at 81,537, down 0.36 percent or 296 points daily, but up 0.90 percent for the week.

Mixed sectoral trends emerged. Consumer services and tech hardware plunged 2.5-3.7 percent, the worst performers. FMCG, media, and IT followed with over 1 percent losses.

Metals, oil & gas outperformed, gaining more than 2 percent, despite a sharp 5 percent+ drop in Nifty Metal on the final day. IT stocks faced selling on dollar strength, liquidity fears, and Fed-related doubts.

Heightened competition weighed on select auto and beverage names. Midcaps and smallcaps outperformed, with Nifty Midcap 100 up 2.25 percent and Smallcap 100 climbing 3.2 percent.

Early weakness stemmed from tariff jitters and patchy earnings, offset by India-EU trade deal hopes lifting related stocks. Mid-week economic survey data, forecasting strong GDP growth and tame inflation for next fiscal, fueled a rally.

Experts predict the budget will dictate near-term direction. Pro-growth policies may bolster key sectors, but global sensitivities persist for IT and exporters.