Indian stock markets experienced a turbulent session recently, with the Sensex plummeting 2,300 points from its day's high, and the Nifty breaching the 24,600 mark. This significant downturn can be attributed to a "cocktail of caution-inducing triggers," including uncertainty surrounding the Union Budget.
On January 30, 2026, the Sensex slid as much as 625 points, or 0.75%, to an intraday low of 81,941.03, while the Nifty 50 fell nearly in lockstep, dropping 205 points, or 0.8%, to touch 25,224.35. The market's decline also stemmed from a weakening rupee and sustained foreign fund outflows. Investor wealth was eroded, with approximately ₹4 lakh crore wiped out within 15 minutes of early trade. Consequently, the total market capitalization of BSE-listed companies decreased to Rs 455.73 lakh crore. By the session's end, both benchmarks had partially recovered, with the Sensex down by 296.59 points (0.36%) to close at 82,269.78, and the Nifty falling by 98 points (0.39%) to close at 25,320.65.
Several factors have contributed to the recent market volatility. Caution ahead of the Reserve Bank of India's (RBI) upcoming monetary policy decision triggered broad-based selling in large-cap stocks. Negative global cues and rising crude oil prices further intensified the risk-off sentiment.
Despite the overall market weakness, small-cap stocks managed to rally, driven by sharp price movements in select counters and defying the broader trend. Sectoral performance was mixed, with metals, PSU banks, and realty outperforming, while private banks faced downward pressure.
Individual stock movements on the Nifty 50 reflected the market's divergence. Mahindra & Mahindra, HDFC Bank, Hindalco, Eternal, and Shriram Finance saw gains, while Coal India, Adani Enterprises, Apollo Hospitals, Adani Ports, and SBI Life Insurance lagged.
The market is anticipating the RBI's Monetary Policy Committee (MPC) outcome. The combination of global risk factors, domestic policy considerations, and currency fluctuations has created an environment of uncertainty for investors.