**MARKET BRIEF: Pre-Budget Caution Triggers Volatility** Indian equities witnessed a sharp sell-off during Thursday’s session, erasing recent gains as nervousness intensified ahead of the **Union Budget 2026-27**. Investors moved to lock in profits, pivoting from global optimism to domestic policy caution. **Key Market Figures (Intraday):** * **Sensex:** Plunged over **590 points** (~0.7%) to hit lows near **81,750**. * **Nifty 50:** Slipped **180+ points**, testing the **25,150** support zone. * **Currency:** Rupee weakened, trading near record lows against the US dollar. **Sectoral & Stock Action:** * **Laggards:** The decline was broad-based with **Auto**, **IT**, and **Banking** sectors taking the biggest hit. * **Maruti Suzuki** and **Asian Paints** dropped over **2%**. * **Titan** and **Hindustan Unilever** shed **~2%** each. * **Gainers:** **Metal** stocks bucked the trend (up **~1.3%**), driven by expectations of infrastructure spending in the upcoming Budget. **Tata Steel** and **JSW Steel** saw buying interest. **Market Drivers:** * **FII Exodus:** Foreign Institutional Investors (FIIs) maintained a 'sell India' stance, with net outflows pressuring the indices. * **Budget Jitters:** Uncertainty regarding capital gains tax, fiscal deficit targets, and populist spending is keeping traders on the sidelines. * **Global Cues:** Escalating global tensions and a pause in Fed rate cuts added to the risk-off sentiment. **Outlook:** Volatility is expected to remain high. Strategists characterize the recent rally as tactical, advising caution until the Budget outcome on **February 1** provides clarity on the government's fiscal roadmap.