Budget Jitters Trigger Profit-Taking, Benchmarks Snap Three-Day Winning Run

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

India stocks fall, rupee fall

By Dehuti Jani

January 30, 2026 at 11:45 AM IST

Indian equity markets ended lower on Friday, snapping a three-day rally as investors turned cautious ahead of the Union Budget 2026 scheduled this weekend. The Nifty50 slipped 0.39%, or 98.25 points, to close at 25,320.65, while the Sensex fell 0.36%, or 296.59 points, to 82,269.78. For January, the Nifty declined 3.1%, marking its worst monthly performance since February 2025, as profit-taking set in after recent gains.

Sectoral moves were mixed, reflecting a defensive tilt. FMCG, media, healthcare and select IT names saw buying interest, while metals bore the brunt of selling, with the Nifty Metal index plunging over 5%. Banks and financials remained under pressure. Among Sensex stocks, Tata Steel, Power Grid, ICICI Bank, HCL Tech and Tech Mahindra were the top laggards, while M&M, SBI, ITC, HUL, BEL and Titan led the gainers. Broader markets were mixed, with the Nifty Midcap 100 down 0.19% and the Smallcap 100 up 0.32%. Investors now await the Union Budget, with a special trading session scheduled on Sunday, February 1.

Top Movers of the Day

ITC shares fell over 2% as investors remained cautious ahead of the Union Budget, despite expectations of stability in cigarette taxation.

Vedanta extended gains, rising over 3%, supported by firm metal prices and continued optimism around demerger plans.

Hindustan Zinc advanced nearly 4%, tracking strength in base metal prices and sustained buying interest in PSU metal stocks.

Asian Paints slipped around 2% amid concerns over demand moderation and margin pressures heading into the budget.

Maruti Suzuki India declined over 1% as auto stocks stayed under pressure on valuation concerns and subdued near-term volume outlook.

Larsen & Toubro gained about 2%, aided by expectations of higher government capital expenditure in the upcoming budget.

NTPC rose nearly 2% as investors positioned for continued policy support to the power and energy transition segments.

Coal India climbed over 2%, supported by firm coal demand outlook and expectations of stable dividend payouts.

Axis Bank traded higher by around 1.5%, tracking strength in banking stocks ahead of the Union Budget.

Tata Steel added nearly 3%, benefiting from higher global steel prices and improved sentiment in metal counters.

Eternal slipped over 2% as selling pressure continued following recent volatility in new-age technology stocks.

Futures & Options
Nifty February 2026 futures closed lower at 25,424.50, down 111.80 points or 0.44%, while continuing to trade at a modest premium to the spot Nifty, reflecting profit-booking and caution ahead of the Union Budget. The India VIX inched up to the 13.6–13.8 zone, signalling a mild rise in near-term volatility expectations. Open interest data showed the highest Call concentration at the 26,000 strike and peak Put interest at 25,000, indicating a near-term trading range of 25,000–25,500. HDFC Bank, Reliance Industries and ICICI Bank remained the most actively traded stock futures, highlighting continued focus on index heavyweights.

Bonds
Government bond weakened in early trade on Friday, pressured by supply concerns ahead of the last debt auction before the Union Budget and softer cues from declining US Treasuries. The benchmark 10-year 6.48% 2035 bond yield ended at 6.6963%, easing marginally from 6.6984% on Thursday, even as sentiment stayed cautious. Traders were cautious before the weekly auction as government raised ₹320 billion by selling the 10-year benchmark bond, highlighting concerns about supply overhang.

Forex
The rupee slipped to a record low in the closing minutes of trade on Friday, capping its worst monthly performance since September 2022, as sustained foreign portfolio outflows and firm corporate dollar demand weighed heavily on the currency. The rupee fell 2.3% in January and touched an all-time low of 91.9875 per dollar before settling marginally weaker at 91.9825. Dollar-selling intervention by the RBI helped keep the currency above the 92-per-dollar mark, though traders cautioned that a staggered depreciation could persist unless foreign inflows revive.

Crypto
Crypto markets slid sharply on today, with risk-off sentiment dominating as geopolitical tensions escalated in the West Asia. Bitcoin fell to around $84,000, while Ethereum dropped to near $2,800, and major altcoins such as XRP and Solana declined to about $1.80 and $115, respectively. The sell-off was triggered by rising fears of a potential military escalation after reports of a large naval buildup in the region and warnings from US President Donald Trump of possible action against Iran.

US Stock Futures
US stock futures moved lower on Friday as investors turned cautious ahead of President Donald Trump’s announcement on his pick to lead the Federal Reserve, while Apple’s results capped a mixed set of Big Tech earnings. Futures tied to the S&P 500 fell 0.9%, Nasdaq 100 futures dropped about 1.2%, and Dow Jones Industrial Average futures eased 0.7%, pointing to continued pressure on equities, particularly technology stocks.

US Treasury Notes
US Treasury yields moved sharply higher on Friday as bond markets priced in a more hawkish Federal Reserve outlook amid growing expectations that President Donald Trump may nominate Kevin Warsh as the next Fed chair. The benchmark 10-year Treasury yield rose around 3 basis points to about 4.27%, nearing a five-month high, while the 30-year bond yield climbed toward 4.9%. The selloff shows investor worries that a Warsh-led Fed may tighten policy, cut liquidity, and keep rates higher for longer.

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