India markets see worst January in four years ahead of Union Budget

The benchmark index fell on Friday, capping its worst January since 2016 as the government grapples with measures to spur the slowing economy.

The Sensex fell 0.5 per cent to 40,723.49 at the close of trade, resulting in a monthly loss of 1.3 per cent, its worst such performance since July and start to the year since 2016. The NSE’s Nifty, too, declined 0.6 per cent.

Local markets will remain open on Saturday, enabling investors to trade as Finance Minister Nirmala Sitharaman outlines the country’s annual Budget as the government seeks to revive demand. 

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Growth in Asia’s third-largest economy is at its slowest pace in more than a decade. As the earnings season progresses, 14 out of 26 Nifty companies that have reported results for the quarter through December have missed analyst estimates. ITC, Hindustan Unilever, and Vedanta are posted their financial results on Friday.

Strategist view

“There are a lot of expectations on the positive side from the Budget,” said Sanjiv Bhasin, an analyst at IIFL Securities in Mumbai. 

“The recent correction  in the market provided investors with a good buying opportunity,” he added.