Quick Read
- India’s Sensex and Nifty indices closed lower on January 30, 2026, ending a three-day rally.
- Sensex fell 296 points to 82,269, and Nifty dropped 98 points to 25,320.
- The decline was attributed to weakness in metal and IT stocks, foreign fund outflows, and pre-budget caution.
- The Indian rupee touched an all-time low of 92.02 against the US dollar before closing at 91.97.
- Nestle India reported a 46% rise in Q3 net profit, while Ambuja Cements saw an 88% fall.
MUMBAI (Azat TV) – India’s benchmark equity indices, the Sensex and Nifty, ended lower on Friday, January 30, 2026, snapping a three-day rally amid investor caution ahead of the Union Budget presentation on February 1. The market downturn was primarily driven by significant declines in metal and information technology (IT) stocks, compounded by fresh foreign fund outflows and a weakening rupee.
The S&P BSE Sensex closed 296 points lower at 82,269, while the NSE Nifty 50 skidded 98 points to finish at 25,320. This broad-based decline reflected a cautious sentiment across the Indian equity markets, with investors de-risking portfolios ahead of key economic announcements.
Key Factors Behind the Market Dip on January 30
Several factors contributed to the bearish trend observed on Friday. Metal and IT sectors were notable laggards, with heavyweight stocks experiencing significant corrections. Tata Steel emerged as the top loser among Sensex firms, tanking 4.57 percent. Other major companies such as ICICI Bank, Power Grid, HCL Technologies, Tech Mahindra, Infosys, and Kotak Mahindra Bank also contributed to the indices’ fall, reflecting widespread selling pressure in these key sectors.
Adding to the market’s woes were fresh outflows of foreign funds, indicating a shift in international investor sentiment. The Indian rupee also faced considerable pressure, touching an all-time low of 92.02 against the US dollar during intraday trade before paring some losses to close at 91.97. A firm American currency and volatile geopolitical cues were cited as reasons for the rupee’s weakness, further dampening investor confidence.
The impending Union Budget, scheduled for presentation on February 1, was a significant overhang, prompting investors to adopt a wait-and-watch approach. This pre-budget caution often leads to profit-booking and reduced trading activity as market participants await clarity on future fiscal policies and their potential impact on various industries.
Mixed Corporate Earnings and Strategic Moves
Despite the overall market downturn, several companies reported their third-quarter (Q3 FY26) results, presenting a mixed bag of performances. Nestle India stood out with a robust performance, posting a 46 percent increase in standalone net profit to ₹1,018.06 crore for the quarter ended December 2025, driven by strong demand for packaged food items and volume-led sales growth of 18.5 percent. The company also announced an interim dividend of ₹7 per share and strategic investments in two special purpose vehicles with Adani Green Energy Limited and Radiance Renewables Private Limited to secure green energy.
Conversely, Ambuja Cements reported a sharp 88 percent fall in standalone net profit to ₹203.99 crore for Q3 FY26, causing its shares to fall by 4 percent. National Aluminium Company (Nalco) saw a modest 1.8 percent rise in consolidated profit to ₹1,595.15 crore, yet its shares declined by 9 percent, possibly reflecting broader market sentiment or specific analyst expectations. Exide Industries reported a 5 percent rise in Q3 profit, attributing it to increased sales to automakers following recent tax cuts, and announced further investment of up to ₹1,400 crore in its subsidiary, Exide Energy Solutions Ltd, for EV battery solutions.
In a significant corporate development, the Adani Group secured credit ratings from the Japan Credit Rating Agency (JCR) for three of its companies. This move is expected to open doors for broader access to Japan’s debt markets, supporting the Indian conglomerate’s aggressive expansion plans. Meanwhile, government data released on Friday showed India’s fiscal deficit for April-December reached ₹8.6 lakh crore, or 54.5 percent of the full-year target, with net tax receipts up from the previous year.
Market Outlook Amidst Economic Indicators
The market’s reaction on January 30, 2026, underscored the sensitivity of Indian equities to both domestic policy expectations and global economic cues. The pre-budget jitters, coupled with foreign fund movements and currency volatility, highlighted the prevailing cautious sentiment. While some companies demonstrated strong individual performances, the broader market remained under pressure, indicating that investors are prioritizing stability and clarity in the near term.
The market’s immediate future will largely hinge on the Union Budget’s announcements, particularly regarding fiscal consolidation, spending priorities, and tax policies, which could either alleviate or intensify current investor concerns.