Indian equity markets closed lower on January 30, 2026, as pre-Budget caution and sustained foreign outflows snapped a three-day rally. Despite domestic optimism, rupee weakness and mixed global cues led to profit booking, overshadowing positive developments like rising forex reserves and the approval of a long-awaited NSE IPO.
Indian equity markets closed lower on January 30, 2026, snapping a three-day rally amid pre-Budget caution, sustained foreign outflows, rupee weakness, and mixed global cues. The dominant themes included anticipation for the Union Budget on February 1, downside risks highlighted in the Economic Survey, currency depreciation, and regulatory progress on major market infrastructure. International developments, particularly the US Federal Reserve leadership nomination, contributed to volatility in global risk assets and emerging markets like India.
- Sensex and Nifty declined moderately due to profit booking ahead of Budget.
- Rupee weakened to near-record lows amid dollar strength and outflows.
- Economic Survey projected solid FY27 growth but flagged global risks.
- Forex reserves reached a new peak, enhancing external buffers.
- SEBI cleared NSE IPO, a long-pending milestone for market depth.
Economic Survey Highlights Global Risks to India's Growth Outlook
The Economic Survey 2025-26, tabled in Parliament, projected India's real GDP growth at 6.8-7.2% for FY27, building on an estimated 7.4% in FY26. It emphasized India's position as the fastest-growing major economy for the fourth year. The survey noted strong private consumption supported by low inflation and rising real purchasing power. Public investment and reforms have elevated medium-term potential GDP to around 7%. Private investment shows early recovery signs after a prolonged slowdown. However, the chief economic adviser warned of downside risks from prolonged global market corrections. Geopolitical tensions and macroeconomic uncertainty pose additional challenges. The document highlighted the need to buffer the economy against external shocks. It stressed continued policy dynamism for sustained momentum. Key priorities include urbanization, employment generation, and AI ecosystem development. Education reforms and MSME scaling were flagged as critical. The survey pointed to improving public finances and easing inflation trends. It underscored broad-based growth across sectors in recent periods. Strong domestic demand remains a key driver amid weak global exports. The upcoming Budget is expected to address these priorities through targeted measures. Overall, the outlook remains optimistic despite external headwinds. This sets a balanced tone for fiscal policy decisions ahead.
Sensex and Nifty End Lower Amid Pre-Budget Caution
Benchmark indices reversed recent gains as investors booked profits before the Union Budget presentation. The BSE Sensex settled 296.59 points lower at 82,269.78, down 0.36%. The NSE Nifty50 declined 98.25 points to close at 25,320.65, a fall of 0.39%. Metal and IT sectors led the selling pressure throughout the session. Broader markets showed resilience in select pockets despite the downturn. Foreign portfolio investor outflows continued to weigh on sentiment. The rupee's weakness added to import-sensitive stock concerns. Rising crude oil prices due to geopolitical factors hurt sentiment further. Intraday lows saw Sensex drop over 600 points at one stage. Defensive sectors like FMCG and consumer durables provided some support. PSU banks and healthcare names also limited deeper losses. The three-day prior rally came to an end on cautionary note. Market volatility increased as Budget expectations built up. Analysts noted profit booking in overbought segments. Global cues remained mixed with US policy uncertainties. The session reflected typical pre-event consolidation behavior. Indices remain positive year-to-date despite January softness. Focus now shifts entirely to February 1 announcements. This close signals cautious positioning among participants.
Business Standard - https://www.business-standard.com/markets/news/stock-market-fall-ahead-of-budget-2026-sensex-nifty-vix-126013000585_1.html
Rupee Depreciates to Record Low Against US Dollar
The Indian rupee touched an all-time low level during trading before partial recovery. It closed near 91.97-92 levels against the US dollar. A firm greenback and global volatility drove the depreciation. Emerging market currencies faced similar pressures broadly. Foreign fund outflows accelerated the downward move. Geopolitical cues from West Asia contributed to risk aversion. Higher crude oil prices increased import bill concerns. The Reserve Bank of India monitors developments closely. Interventions aim to curb excessive volatility in the currency. Forex reserves provide a comfortable buffer for stability efforts. The weakness could feed into imported inflation over time. Importers face higher costs in dollar terms currently. Exporters gain some competitiveness from the shift. Market participants watch for potential RBI actions ahead. The move aligns with broader dollar strength trends. Pre-Budget positioning added to selling pressure. Currency markets expect continued volatility near term. This level marks a psychological threshold for many. Long-term fundamentals support eventual stabilization. The episode highlights external vulnerabilities.
The Economic Times - https://m.economictimes.com/markets/stocks/live-blog/bse-sensex-today-nifty50-stock-market-live-updates-gift-nifty-meesho-itc-share-price-30-january-2026/liveblog/127789054.cms
SEBI Approves NSE's Long-Awaited IPO
The Securities and Exchange Board of India granted clearance for the National Stock Exchange IPO. This ends over a decade of delays for the country's largest bourse. The approval removes a major regulatory hurdle. NSE can now proceed toward filing detailed offer documents. Settlement of legacy issues appears addressed sufficiently. The move enhances market infrastructure credibility. It could boost investor participation and liquidity. Exchange valuations stand to benefit significantly. Demutualization process reaches key milestone. Broader capital market reforms gain momentum. Listing would diversify ownership structure further. It aligns with deepening financialization in India. Market participants welcome the long-pending development. The IPO size and pricing remain awaited details. This clearance boosts sentiment in financial services space. It reflects regulatory streamlining efforts. Potential proceeds could fund expansion initiatives. The event holds symbolic importance for Indian markets. Overall, it represents positive structural progress.
LinkedIn / CNBC-TV18 Reference - https://www.linkedin.com/pulse/top-stories-trumps-fed-pick-gold-silver-tailspin-sebi-nod-nse-tljtc
India's Forex Reserves Hit Record High
Foreign exchange reserves rose sharply to $709.41 billion as of January 23, 2026. This marks an increase of about $8 billion from the prior week. The Reserve Bank of India released the latest weekly data. Swaps and gold revaluation contributed to the buildup. Reserves provide strong external shock absorption capacity. Import cover stands at comfortable levels historically. The surge bolsters rupee defense capabilities. It reflects prudent forex management strategy. Gold holdings value appreciation aided the rise. Domestic liquidity management via swaps played a role. External debt metrics remain favorable. Current account position shows improvement trends. This level offers reassurance amid global uncertainties. Reserves more than doubled from earlier decade figures. The buffer supports confidence in economic stability. RBI continues active market monitoring. The rise counters recent rupee pressures effectively. It enhances India's external position ranking. Overall, a positive macroeconomic signal.
Economic Times - https://m.economictimes.com/news/economy/indicators/indias-forex-reserves-up-by-8-billion-to-709-41-billion-as-of-january-23/articleshow/127799833.cms
Budget 2026 to Emphasize Economic Resilience
The Union Budget presentation approaches on February 1 amid high expectations. Focus lies on countering global uncertainties through policy. Growth, employment, and fiscal stability top priorities. The Economic Survey sets the stage for key decisions. Private investment revival remains central theme. Infrastructure and consumption support likely emphasized. Tax rationalization could feature for demand boost. External shock buffering measures anticipated. Rail, multimodal transport, and freight sectors in focus. Insurance industry seeks favorable changes. Overall resilience building guides fiscal approach. Public capex continuity expected. MSME scaling and AI ecosystem development highlighted. Urbanization reforms may see allocations. Job creation initiatives likely prioritized. Inflation control success provides policy space. The Budget aims for balanced short- and long-term measures. Markets await clarity on fiscal glide path. This event dominates near-term sentiment drivers.
ITC Posts Decline in Q3 Net Profit
ITC reported a 6.1% year-on-year drop in consolidated net profit to ₹5,088 crore for Q3 FY26. Results came slightly below street expectations. Revenue grew 5.7% to ₹18,017 crore during the quarter. EBITDA increased 7.6% to ₹6,271 crore. Operating margins expanded to 34.8%. A ₹274 crore provision for labor code impacted bottom line. FMCG segment faced inflationary headwinds. Cigarette business remained core contributor. Diversified segments showed mixed performance. Overall consumer demand environment remained challenging. The company maintains strong balance sheet position. Dividend outlook stays supportive. Stock reaction reflected earnings disappointment. Analysts monitor margin trajectory ahead. Volume growth in key categories watched closely. The results highlight sector-specific pressures. ITC continues transformation journey. Long-term fundamentals appear intact despite near-term softness.
India Infoline - https://www.indiainfoline.com/news/markets/top-stocks-for-today-30th-january-2026
Trump Nominates Kevin Warsh as Federal Reserve Chair
US President Donald Trump nominated former Fed Governor Kevin Warsh to lead the central bank. The pick aims to succeed Jerome Powell upon term end. Warsh previously served during the 2008 crisis period. Markets reacted with immediate volatility to the announcement. Stocks and bonds declined on the news. The dollar strengthened in response. Investors view Warsh as potentially more hawkish or rate-cut friendly. Confirmation process requires Senate approval. The nomination could reshape monetary policy direction. It impacts global interest rate expectations. Emerging markets including India face capital flow implications. The move aligns with administration's lower-rate preferences. Fed independence questions arise from the choice. Policy normalization trajectory may shift. Consumer borrowing costs could see changes. Savings rates face corresponding adjustments. Global trade and investment flows stand affected. The development adds to policy uncertainty. Markets digest potential implications actively.
Reuters - https://www.reuters.com/world/us/live-updates-trump-nominates-kevin-warsh-next-fed-chair-2026-01-30/
US Economy Projected to Show Resilience in 2026
Federal Reserve assessments indicate continued US economic strength ahead. Growth expected at or above trend levels in 2026. Labor market cooling occurs gradually without sharp deterioration. Inflation trends toward the 2% target steadily. Policy normalization supports soft landing prospects. Consumer spending remains a key tailwind. AI-driven productivity gains bolster outlook. Trade deficit widening presents challenges. Geopolitical risks and policy uncertainty persist. Dollar strength influences global dynamics. The resilient view contrasts with some market concerns. Fed officials monitor data closely. Interest rate decisions hinge on incoming information. This outlook affects worldwide capital allocation. Emerging economies watch US developments keenly. India's linkage through trade and flows remains significant. The projection supports moderate global growth assumptions. Overall, a balanced yet positive assessment prevails.
Gold Prices Remain Elevated Amid Global Risks
Precious metals faced volatility following major policy news. Gold stays supported by geopolitical tensions and trade frictions. US-China dynamics contribute to safe-haven demand. Citi analysts expect sustained elevated levels in 2026. Some fading anticipated later in the year. Prices reacted sharply to Fed nomination developments. India, as major consumer, sees import implications. Reserves benefit from gold revaluation gains. Currency weakness increases domestic gold costs. Jewelry and investment demand monitor closely. Central bank buying supports underlying trend. The metal serves as hedge against uncertainties. Volatility spikes on key announcements. Long-term bullish case tied to risks. Short-term corrections possible on dollar moves. Indian households maintain traditional affinity. Overall, prices reflect macro risk premium currently.