On Friday, January 30, the Indian stock market paused its recent gains, with the Sensex and Nifty 50 closing lower. Ahead of the Union Budget 2026 on Sunday, February 1, investors opted for profit booking, resulting in a careful and subdued trading session.
The BSE Sensex closed at 82,269.78, down 297 points or 0.36%, while the Nifty 50 settled at 25,320.65, declining 98 points or 0.39%. Despite the setback in the benchmarks, the mid and small-cap segments showed resilience, indicating selective buying in certain areas of the market.
Market Performance Snapshot
- BSE 150 MidCap Index: -0.09%
- BSE 250 SmallCap Index: +1.25%
- Weekly trend: Both Sensex and Nifty rose modestly.
- Monthly trend: Both indices dropped over 3%, extending losses for the second consecutive month.
The mid and small-cap outperformance highlighted investors’ focus on opportunities beyond the blue-chip heavyweights, even as benchmark indices retreated.
Key Drivers Behind Friday’s Market Movement
The decline in the Sensex and Nifty was primarily due to profit booking in major stocks, alongside broader market caution ahead of the Union Budget.
- Top drags on Sensex: ICICI Bank, HDFC Bank, Tata Steel, Infosys, Kotak Mahindra Bank
- Investor sentiment: Mixed, as expectations remain that the Budget may not introduce major consumption-boosting measures.
- Additional pressures:
- Geopolitical uncertainties
- FII selling
- Weak Indian rupee, which hit a record low of 91.98 per USD on Friday, marking a 2.3% fall in January
- Mixed corporate earnings
Together, these factors kept investor sentiment restrained, holding the benchmark indices in check.
Sector-Wise Performance
Market movement was uneven across sectors, with some segments witnessing sharp declines while others showed resilience:
- Nifty Metal: -5.21%
- Nifty IT: -1.03%
- Nifty Private Bank: -0.63%
- Nifty Oil & Gas: -0.53%
- Nifty Bank: 59,610 (-0.58%)
- Financial Services Index: -0.65%
On the upside, Media, FMCG, and Consumer Durables gained over 1%, while Auto, Realty, and Pharma saw increases of nearly 1%.
Top Gainers and Losers in Nifty 50
Top gainers:
- Nestle India: +3.46%
- Tata Consumer: +2.24%
- Apollo Hospitals Enterprise: +2.19%
Top losers:
- Hindalco Industries: -5.98%
- Tata Steel: -4.81%
- Coal India: -3.46%
This sharp contrast between gainers and losers reflected selective buying amidst overall market caution.
Most Active Stocks by Volume
- Vodafone Idea: 173 crore shares
- Tata Silver ETF: 88.4 crore shares
- Tata Gold ETF: 74 crore shares
The high trading volumes in these counters highlighted significant investor interest, especially in commodities-linked ETFs and telecom stocks.
Advance-Decline Ratio
- Advancers: Over 2,400 stocks
- Decliners: Over 1,700 stocks
Even as benchmarks fell, the broader market showed healthy breadth, signaling that many mid and small-cap stocks continued to attract buying.
Stocks With Significant Movements
- 12 stocks jumped over 15%, including Tokyo Plast International, Raymond Realty, and Paras Petrofils.
- 52-week highs: Nearly 80 stocks, such as SBI, Axis Bank, Shriram Finance, and Nestle India.
- 52-week lows: 291 stocks, including ITC, Dixon Technologies (India), and Colgate Palmolive (India).
These extremes underscore the market’s selective strength and weakness, reflecting varied investor interest across sectors.
Summary
Friday’s session saw profit booking in heavyweights, causing the Sensex and Nifty 50 to snap their three-day winning streak. While mid and small-cap stocks performed well, overall market sentiment remained cautious ahead of the Union Budget 2026. Investors were mindful of geopolitical risks, foreign fund outflows, and currency weakness, keeping benchmarks in check.
Despite the decline, pockets of strong buying in FMCG, Media, Consumer Durables, and select ETFs suggested that investors are still finding opportunities in a volatile market.
The Union Budget 2026, set for Sunday, February 1, will likely be the next major trigger for market movements, with investors waiting closely for cues on fiscal support and growth measures.
Source: Livemint
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