Stock markets snap 3-day rally dragged by metal, IT stocks

Fresh foreign fund outflows and weakness in the rupee also added to the bearish trend in the equity markets.

The 30-share BSE Sensex declined 296.59 points or 0.36% to settle at 82,269.78. During the day, it tumbled 625.34 points or 0.75% to 81,941.03.

The 50-share NSE Nifty dropped 98.25 points or 0.39% to end at 25,320.65.

From the Sensex firms, Tata Steel tanked the most by 4.57%. ICICI Bank, Power Grid, HCL Tech, Tech Mahindra, Infosys and Kotak Mahindra Bank were also among the laggards.

Mahindra & Mahindra, State Bank of India, ITC and Bharat Electronics were among the gainers.

Foreign institutional investors offloaded equities worth ₹393.97 crore on Thursday (January 29, 2026) after a day’s breather, according to exchange data. Domestic Institutional Investors (DIIs) however, bought stocks worth ₹2,638.76 crore.

“Indian equity markets remained volatile ahead of the Union Budget, with benchmark indices dragged lower by weakness in IT and metal stocks. The IT sector lagged due to global growth concerns and higher U.S. bond yields, while gold and silver declined amid a stronger dollar.

“Persistent FII selling and continued rupee depreciation kept market sentiment cautious,” Vinod Nair, head of research, Geojit Investments Limited, said.

With geopolitical risks and global tariff pressures rising, the Union Budget is keenly awaited for cues on growth support and fiscal discipline, he added.

India’s economy is projected to grow by 6.8-7.2% in the fiscal year starting April, the government’s pre-Budget Economic Survey said on Thursday (January 29, 2026), reaffirming the country’s status as the world’s fastest-growing major economy despite trade risks and global volatility clouding the outlook.

In Asian markets, South Korea’s Kospi settled higher, while Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended lower.

Markets in Europe were quoting higher.

U.S. markets ended mostly lower on Thursday (January 29, 2026).

“Indian equity markets traded with a weak and cautious bias, retreating from recent highs amid aggressive selling in metal and IT stocks. Mixed cues from overseas markets, along with persistent weakness in the rupee, capped intra-day recovery attempts.

“Overall, sentiment remained cautious, with market participants balancing pre-Budget positioning against external headwinds,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Brent crude, the global oil benchmark, dropped 0.88% to $70.09 per barrel.

On Thursday (January 29, 2026), the Sensex climbed 221.69 points or 0.27% to settle at 82,566.37. The Nifty edged higher by 76.15 points or 0.30% to end at 25,418.90.

Published – January 30, 2026 04:23 pm IST