Executive Summary
Indian equity markets demonstrated remarkable resilience on Thursday, Thursday, January 29, 2026, extending their winning streak for the third consecutive session. The trading day was defined by a sharp recovery from early-session lows, driven by the positive sentiment surrounding the release of the Economic Survey 2025-26 and substantial buying from domestic institutional investors.
The benchmark Nifty 50 settled at 25,418.90, marking a gain of 76.15 points or 0.3%. The BSE Sensex rose by 221.69 points or 0.27% to close at 82,566.37. Leading the outperformance was the Bank Nifty, which surged by 359.72 points or 0.6% to finish just shy of the psychological 60,000 mark at 59,957.85. While the headline indices finished in the green, the broader market remained cautious, reflecting a divergence between large-cap stability and mid-cap volatility.
Market Mechanics: Intraday Volatility and Recovery
The trading session on Thursday, Thursday, January 29, 2026, opened under significant pressure. Early selling, triggered by mixed signals from Wall Street and geopolitical tensions in the Middle East, pushed the Sensex down by as much as 637 points to an intraday low of 81,707.94. The Nifty 50 also tested the 25,160.90 level before finding strong support.
The tide turned during the second half of the day. As market participants digested the optimistic GDP growth projections of 6.8-7.2% from the Economic Survey, a wave of value buying emerged. The Nifty 50 eventually reached an intraday high of 25,455.40, marking a total intraday swing of approximately 295 points. This V-shaped recovery suggests that despite global headwinds, the domestic narrative remains strong ahead of the upcoming Union Budget.
Benchmark Performance Table
| Index | Closing Value | Point Change | % Change |
|---|---|---|---|
| Nifty 50 | 25,418.90 | +76.15 | +0.3% |
| Sensex | 82,566.37 | +221.69 | +0.27% |
| Bank Nifty | 59,957.85 | +359.72 | +0.6% |
Top Movers Analysis
The Gainers
- Tata Steel (+4.37%): The metal giant led the index gainers as global commodity prices remained firm. Investors also reacted to the improved demand outlook for steel in the wake of the Economic Survey's focus on infrastructure.
- Larsen & Toubro (+3.67%): L&T witnessed strong buying interest after reporting a robust Q3 performance, with consolidated revenue growing 10% to Rs 71,450 crore. This reinforced confidence in the capital goods cycle.
- Eternal (+3.40%): Continued to attract buying momentum, benefiting from the broader rally in the metal and industrial segments.
- Tata Motors PV (+3.34%): Anticipation of strong domestic passenger vehicle sales numbers drove this auto major higher.
- Axis Bank (+3.33%): Led the private banking rally as visibility on credit growth improved, helping the Bank Nifty outperform the main benchmarks.
The Losers
- Asian Paints (-3.82%): The top loser on the Nifty, facing pressure due to rising raw material costs and concerns over margin contraction.
- SBI Life Insurance (-2.78%): Witnessed profit-taking as investors rotated out of insurance and defensive sectors.
- InterGlobe Aviation (-2.70%): IndiGo faced headwinds as crude oil prices hovered near the $70 mark, threatening fuel cost stability.
- Maruti Suzuki (-2.53%): Despite the rally in Tata Motors, Maruti struggled due to concerns regarding volume growth in the entry-level segment.
- Tata Consumer Products (-2.18%): Reflected the general weakness in the FMCG sector as rural demand concerns persisted.
Sectoral Deep Dive
- Metals (+3.07%): The undisputed star of Thursday, Thursday, January 29, 2026. Apart from Tata Steel, Hindustan Copper stole the limelight, surging over 20% on expectations of exponential demand from the electric vehicle (EV) and power sectors.
- Banking (+0.60%): While the Bank Nifty showed strength, the performance was bifurcated. Private lenders like ICICI and Axis Bank led the charge, while PSU Banks (-0.45%) lagged due to lingering concerns over asset quality and slower credit expansion.
- Realty (+0.67%): Real estate stocks gained traction as the Economic Survey emphasized affordable housing and urban infrastructure development.
- Underperformers: The FMCG (-0.91%) and Pharma (-0.81%) sectors saw profit-taking for the fourth straight session. The IT sector (-0.76%) also faced pressure, largely due to the record low of the Indian rupee and uncertainty regarding global tech spending.
Institutional Activity
On Thursday, Thursday, January 29, 2026, there was a stark contrast between foreign and domestic institutional behavior:
- Foreign Institutional Investors (FIIs): Turned net sellers in the cash market, offloading shares worth Rs 393.97 crore. More significantly, they were aggressive sellers in the derivatives segment, with a net sell of Rs 1,763.32 crore in index futures and over Rs 2,500 crore in Nifty futures, suggesting a cautious hedge against potential volatility.
- Domestic Institutional Investors (DIIs): Continued to be the market's backbone, pumping in a massive Rs 2,638.76 crore. This marks three consecutive days of significant DII buying, effectively absorbing foreign selling pressure.
Market Breadth Analysis
Despite the positive close for the Sensex and Nifty, the underlying market breadth was surprisingly weak.
- NSE: 1,640 stocks advanced while 2,424 declined.
- BSE: Approximately 1,700 stocks advanced against 2,500 declines.
The advance-decline ratio of 0.68:1 indicates that the rally was concentrated in heavyweight large-cap stocks. Retail investors, primarily concentrated in mid and small-cap segments, faced a tougher day as profit-taking hit the broader market.
Global Factors Impact
The global backdrop on Thursday, Thursday, January 29, 2026, was one of cautious observation.
- US Markets: The previous session saw the S&P 500 flat, while the Dow Jones gained a marginal 12.19 points. This mixed performance set a neutral tone for Asian markets.
- Currency & Dollar Index: The Dollar Index (DXY) slipped to 96.40. While a weaker dollar is traditionally positive for emerging markets, the Indian rupee touched a record low of 91.96-91.99, reflecting significant domestic capital outflows and a high import bill.
- Crude Oil: Settled at $69.59. Intraday, it breached $70 due to Middle East tensions involving Iran, which weighed on Indian oil marketing and aviation companies.
Key News Impact Analysis
- Economic Survey 2025-26: The projection of 6.8-7.2% GDP growth for FY27 acted as the primary catalyst for the afternoon recovery, signaling structural optimism.
- India-EU FTA: The finalization of the Free Trade Agreement is a landmark development. It is expected to significantly boost exports in Pharma, IT, and Textiles, though the immediate market reaction was muted by sectoral profit-booking.
- IIP Growth: The Index of Industrial Production (IIP) surged 7.8% in December 2025, the fastest in two years, confirming that the manufacturing recovery is well underway.
- Precious Metals: Gold futures hitting Rs 1.75 lakh per 10g and Silver at Rs 4.07 lakh/kg indicates a flight to safety among some investor classes amid geopolitical instability.
- US Fed Pause: The Federal Reserve holding rates at 3.5-3.75% provided some relief, ensuring that global liquidity conditions do not tighten abruptly in the near term.
Technical Outlook
Technically, the Nifty 50 has managed to reclaim the 25,400 zone, which is a bullish sign. However, the 25,500-25,550 range remains a stiff resistance. On the downside, 25,300 is the immediate support, with the psychological 25,000 level acting as a major floor. The Bank Nifty's move toward 60,000 will be the key trendsetter for the next few sessions.
Strategic Implications for Investors
As we approach the Union Budget, the market behavior on Thursday, Thursday, January 29, 2026, suggests a shift toward quality and cyclical stocks. Investors should consider the following:
- Focus on Large-Caps: Given the weak market breadth, large-cap stocks with strong earnings visibility offer better risk-adjusted returns.
- Sectoral Rotation: The move into Metals and Infrastructure (via L&T) suggests that the growth-oriented theme is gaining favor over defensive FMCG and IT plays.
- Currency Sensitivity: With the rupee at record lows, companies with high dollar-denominated debt or heavy reliance on raw material imports (like Asian Paints) may face continued headwinds.
- Safe Havens: The record highs in gold and silver highlight the importance of asset diversification in a volatile geopolitical environment.
In conclusion, the Indian market remains in a 'buy on dips' mode, supported by strong internal economic indicators, even as it navigates a complex global landscape.