The BSE Sensex fell 592 points, or 0.7%, to 81,752 in morning trade on Thursday, erasing gains from the previous two sessions as traders grew cautious ahead of the Union Budget 2026 due this weekend. Escalating global tensions also pressured sentiment, along with further weakness in the rupee due to ongoing foreign outflows and mixed earnings results, while rising oil prices heightened worries about domestic inflation. However, a trade agreement between India and the EU capped the fall. The government’s GDP forecast of 6.8%–7.2% for 2026–27 also prevented the index from falling more steeply. Most sectors traded in the red, including auto, tech, banking, and financial services. Among the biggest laggards were Maruti Suzuki (-2.4%), Asian Paints (-2.3%), Mahindra & Mahindra (-2.3%), Titan (-2.1%), and Hindustan Unilever (-2.1%). By contrast, metal stocks rose 1.3% on hopes of a rise in infrastructure spending in this year’s budget, with gains from Tata Steel (1.9%) and JSW Steel (0.9%).