Sensex Slides 600 Points, Nifty Near 25,150: What’s Dragging Markets Before Economic Survey 2026

The Indian stock market saw heavy selling on Thursday, January 29, as investors booked profits and turned cautious ahead of the Economic Survey 2026.

The Sensex dropped over 600 points to an intraday low of 81,707, while the Nifty 50 slipped close to the 25,150 mark. Broader markets also weakened, with mid- and small-cap stocks falling up to 0.7%.

Investor Wealth Takes a Hit

Within the first hour of trade, investors lost more than ₹3 lakh crore. The total market value of BSE-listed companies fell sharply compared to the previous session, reflecting widespread selling pressure.

Key Reasons Behind the Market Fall

1. Rising Geopolitical Tensions

Investors were rattled by growing tensions between the US and Iran. Strong warnings from Iran following US threats over its nuclear programme have raised fears of a wider conflict.

Markets worry that any escalation could disrupt global stability, increase inflation, and hurt economic growth worldwide.

2. Rupee Falls to Record Low

The Indian rupee slipped to a historic low of 92 against the US dollar. Continued foreign fund outflows, global uncertainty and higher import costs added pressure on the currency.

A weaker rupee often discourages foreign investors and adds stress to the equity markets.

3. Rising Energy Prices Weigh on Sentiment

Global energy prices moved higher amid geopolitical concerns. For India, which depends heavily on imports, this raises worries about inflation, fiscal pressure and corporate margins.

These concerns further weakened investor confidence.

4. Caution Ahead of Union Budget 2026

Markets are also nervous ahead of the Union Budget. 

Also Read: TCS Announces USD 37 Million Investment to Build Largest Delivery Centre in Brazil!

5. Continued Selling by FIIs

Foreign institutional investors (FIIs) remain net sellers in Indian equities. Since July last year, FIIs have been consistently reducing exposure to Indian stocks.

In January alone, FIIs have sold shares worth over ₹43,000 crore. 

Conclusion

The sharp fall in Sensex and Nifty reflects a mix of global risks, currency weakness, foreign fund outflows and pre-Budget caution. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.