Indian equity markets saw a volatile session on Thursday, 29 January 2026, as investors navigated a mix of global cues, domestic developments, and short-term profit booking. The BSE Sensex tumbled over 600 points intraday, while the Nifty 50 slipped below 25,250, closing around 25,182, reflecting heightened caution on Dalal Street.

Trading began with early losses of over 400 points on the Sensex and a Nifty around 25,250, before the indices tried a temporary recovery due to short-covering by traders, only to fall further to their session lows as global markets remained mixed. This intraday swing underscores the uncertain mood among investors, balancing optimism from recent rallies with near-term macro risks.

Why Did Sensex and Nifty Fall Today?

Several factors contributed to the decline:

Global cues:
Asian markets were subdued — Japan’s Nikkei futures and Australia’s S&P/ASX 200 were down, Hong Kong’s Hang Seng slipped slightly, while U.S. S&P 500 futures were largely flat. Mixed signals overseas tempered risk appetite in India, and early gains from optimism over global trade deals failed to sustain.

Currency pressure:
The rupee hovered near historic lows at ₹92 per US dollar, adding concerns about import costs and foreign investor sentiment. A weaker currency weighed on IT and pharma sectors, which normally benefit from exports.

Profit booking and short-term FII moves:
Foreign institutional investors (FIIs) were reportedly selling selectively in India, waiting for clarity from the upcoming Union Budget and Economic Survey. This cautious stance, combined with traders closing positions ahead of policy announcements, contributed to Nifty’s downward pressure despite pockets of buying.

Dr V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “Markets are reacting to global uncertainties and domestic policy expectations. Short-term swings are natural, but long-term fundamentals remain strong for select sectors.”

What Were the Key Index Levels and Intraday Swings?

• Sensex: Opened with a drop of ~400 points, later tumbled over 500 points, and at session lows fell over 600 points to 82,050.

• Nifty 50: Started around 25,250, dipped to 25,182, down 160.41 points, before modestly recovering.

This intraday movement was largely influenced by short-covering activity, where traders closed positions from previous bets, creating temporary rallies before broader selling resumed.

Which Sectors and Stocks Were in Focus?

• Oil & Gas: ONGC and Reliance Energy gained on rising global crude oil prices due to supply disruptions.

• Precious Metals: Gold approached ₹1.8 lakh per 10 grams, and silver crossed ₹4 lakh per kg, reflecting investor risk aversion.

• IT & Pharma: Tata Consultancy Services, Infosys, and pharma majors struggled amid a weak rupee and tariff concerns.

• Financials & Autos: HDFC Bank, Maruti, and other top stocks faced selling pressure, reflecting broader market caution.

The mix of sectoral gains and losses highlights selective buying in commodities and safe-haven assets, while riskier or export-dependent sectors remained under pressure.

How Are Global Events Affecting the Indian Market?

Markets were influenced by:

• Federal Reserve cues: The US Fed maintained rates at 3.5–3.75%, signaling vigilance over inflation and employment.

• Global trade optimism: Talks of India–EU free trade agreements and potential US-India trade arrangements lifted sentiment briefly.

• Asian market movements: Mixed performances in Tokyo, Hong Kong, and Shanghai futures contributed to cautious trading.

While global positivity offered short-lived support, domestic caution and currency concerns dominated the session.

What Does This Mean for Investors?

1. Short-term volatility will continue: Intraday swings and sector-specific moves suggest investors need to stay selective.

2. Policy events are key: Union Budget and Economic Survey outcomes will influence trends in the coming days.

3. Focus on sector fundamentals: Commodities, safe-haven metals, and resilient domestic plays are currently preferred.

Overall, the market is digesting multiple signals global, domestic, and policy-related while investors remain cautious but watchful for opportunities.

Bottom Line

Yes Sensex fell over 400 points and Nifty slipped below 25,250 amid a combination of global uncertainties, domestic policy anticipation, currency pressure, and profit booking. While short-term swings and intraday volatility may continue, strategic investors are monitoring key sectors and policy developments for guidance. The session highlights how Dalal Street reacts dynamically to macro cues and technical factors like short-covering, underlining the importance of selective stock strategies.