Indian stock market indices Sensex and Nifty 50 traded lower on Thursday, snapping their two-day of winning streak. The Nifty 50 opened 0.01 per cent higher
at 25,345 and Sensex started the session with a marginal gain of 0.05 per cent at 82,368.96. However, the indices erased the gains immediately and traded northward with Nifty slipping below 25,200 and Sensex falls more than 600 points. Around 11:30 AM, the 30-pack index traded 218.24 points or 0.27 per cent lower at 82,126. Similarly, the NSE Nifty traded with a cut of 80.25 points or 0.32 per cent at 25,262.50 around the same time. Markets have been trailing lower due to multiple reasons, including continuous FII selling and pressure on Rupee and Fed policy. On NSE, 14 sectors were in the red. Nifty Auto and Nifty Consumer Durables declinedthe most, dropping nearly 2 per cent during Wednesday's trading session. Market breadth remained sharply negative, with only 993 of the 3,085 traded stocks advancing, while 1,994 declined and 993 were unchanged as of 11:24 AM on January 29, 2026.
US Fed Policy
Markets came under pressure after the US Federal Reserve, led by chair Jerome Powell, kept the interest rate steady at 3.50 per cent-3.75 per cent, citing still-elevated inflation alongside solid economic growth and giving little indication in its latest policy statement of when borrowing costs might fall again."In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 per cent," the US Federal Reserve said in a press release.
The US Federal Reserve said that the available indicators suggest that economic activity has been expanding at a solid pace. While job gains have remained low, and the unemployment rate has shown some signs of stabilisation, the central bank said inflation remains somewhat elevated.
Economic Survey
Markets have also been under pressure after the as Union Finance Minister Nirmala Sitharaman presenting the Economic Survey 2025-26 in Parliament, today, January 29, 2026, providing a comprehensive assessment of India's economic performance.This document will highlight key trends, challenges and opportunities in the economy, setting the stage for the Union Budget 2026-27, which will be presented on February 1, 2026. The Economic Survey is a crucial indicator of the government's economic priorities and policy direction.
Catch live updates of the survey here.
Rupee
Notably, another reason for continued pressure is that the Indian rupee plunged to a fresh all-time low on Thursday, breaching the psychologically important 92-per-dollar level as persistent foreign fund outflows and heightened corporate hedging pressure overshadowed the country’s strong economic fundamentals.Thursday’s slide took the rupee past its previous record of 91.9650, set just a week earlier. The renewed weakness underscores a widening gap between India’s robust macroeconomic performance and the cautious, sentiment-driven outlook of global currency markets.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
