Indian Equity Markets Climb for Third Consecutive Session as Economic Survey Boosts Optimism

Market Update at 03:50 PM: Indian equity markets closed higher for the third straight session on Thursday, despite bouts of volatility during early trading hours. Investor sentiment improved following the release of the annual Economic Survey, which provided a positive outlook for the economy.

The Economic Survey projected India’s GDP growth at 6.8 to 7.2 per cent in the 2026-27 financial year and stated that the country is on track to meet the fiscal deficit target of 4.4 per cent in FY26. The report added optimism to the markets, as it highlighted stable macroeconomic conditions and continued growth prospects.

At market close, the Nifty 50 ended 0.3 per cent higher, rising 76.15 points to Rs 25,418.90, while the Sensex gained 0.27 per cent, up 221.6 points to Rs 82,566.37.

Among the Sensex constituents, Tata Steel, L&T, Axis Bank, Eternal, and NTPC were the Top Gainers, rising up to 4.5 per cent. On the other hand, Asian Paints, IndiGo, Maruti Suzuki, TCS, and BEL were the Top Losers for the day.

In the broader market, the Nifty Midcap 100 and Nifty Smallcap 100 indices ended higher by 0.18 per cent and 0.20 per cent, respectively. Sectorally, the Nifty Metal index outperformed, surging over 3 per cent, while the Nifty Healthcare index recorded the largest loss, followed by the Nifty FMCG, Nifty Chemicals, and Nifty Pharma indices.

Market Update at 12:36 PM: Indian equity benchmark indices Sensex and Nifty traded lower on Thursday amid muted global cues and cautious investor sentiment ahead of key domestic events. Overnight, the U.S. Federal Reserve, led by Chair Jerome Powell, kept interest rates unchanged in the range of 3.5 per cent to 3.75 per cent, offering no immediate triggers for global markets.

Back home, market participants remained on the sidelines as investors awaited the presentation of the Economic Survey 2025–26 in Parliament by Union Finance Minister Nirmala Sitharaman later today. The survey is expected to provide insights into the state of the economy ahead of the Union Budget.

At 12:00 PM, the BSE Sensex was trading at 82,063, down 281 points or 0.34 per cent, while the NSE Nifty50 slipped 80 points or 0.32 per cent to 25,262.

In the Sensex pack, most stocks were under pressure. Only L&T, NTPC, Tata Steel, Axis Bank, SBI, Eternal, and Bharti Airtel were trading in the green. The decline was led by Asian Paints, IndiGo, M&M, Maruti Suzuki India, and Titan Company, which fell by up to 3.24 per cent.

Broader markets also witnessed weakness, with the Nifty Midcap 100 declining 0.38 per cent and the Nifty Smallcap 100 down 0.14 per cent.

On the sectoral front, the Nifty Metal index outperformed the broader market, rising over 2 per cent. However, most other sectoral indices traded in the red. Nifty IT, Auto, FMCG, Consumer Durables, and Media indices were down over 1 per cent each. Banking and oil & gas stocks showed relative resilience.

Meanwhile, the Indian Rupee hit a fresh record low of Rs 91.99 against the USD, adding to the cautious sentiment in domestic markets.

Market Update at 10:03 AM: Indian equity benchmarks opened on a muted note on Thursday, January 29, 2026, after registering gains over the previous two sessions, as investor focus shifted to India’s Union Budget scheduled for Sunday.

The Nifty 50 slipped 0.47 per cent, while the BSE Sensex declined 0.51 per cent in early trade. Among sectoral indices, Nifty Financial Services eased 0.24 per cent and Nifty IT dropped 1.40 per cent.

As of 9:15 a.m. IST, the Nifty 50 was marginally higher by 0.01 per cent at 25,345, and the Sensex added 0.03 per cent to trade at 82,368.96. Most of the major sectoral indices opened in the green, though heavyweight financials and IT stocks limited overall gains, falling around 0.3 per cent each. Broader markets outperformed, with Small-Cap stocks rising 0.5 per cent and Mid-Cap stocks gaining 0.2 per cent.

Markets are closely watching the Union Budget for cues on economic growth momentum, fiscal strategy, and corporate earnings outlook in the world’s fastest-growing major economy. Indian equity markets will remain open for a special trading session on Sunday to react to the budget announcements.

The Nifty and Sensex had each gained nearly 1 per cent over the last two sessions, supported by improved sentiment following the announcement of a free trade agreement with the European Union. Under the agreement, the EU will eliminate tariffs on 90 per cent of Indian goods, boosting optimism around exports and trade-led growth.

Globally, Asian markets traded largely flat, while Wall Street equities posted modest gains overnight after the U.S. Federal Reserve held interest rates steady, as widely expected. The Fed cited still-elevated inflation and resilient economic growth, with markets not pricing in another rate cut until the June meeting.

Meanwhile, foreign portfolio outflows from Indian equities continued amid concerns over potential U.S. tariff measures and the impact of higher U.S. interest rates. Elevated U.S. rates tend to strengthen the USD and U.S. Treasury yields, making emerging markets such as India relatively less attractive to global investors.

Pre-Market Update at 7:47 AM: The Indian stock market is likely to open lower on Thursday amid mixed global cues and ahead of the tabling of the Economic Survey 2025–2026 in Parliament. Gift Nifty trends and overnight developments across global markets are indicating a cautious start for domestic equities.

Gift Nifty was trading around the 25,364 level, a discount of nearly 86 points from the previous close of Nifty futures, pointing to a negative opening for the Indian stock market indices.

On Wednesday, domestic equities ended with healthy gains supported by broad-based buying and optimism over a potential India–EU free trade agreement. The Sensex rose 487.20 points, or 0.60 per cent, to close at 82,344.68, while the Nifty 50 gained 167.35 points, or 0.66 per cent, to settle at 25,342.75. Market experts said the recent positive momentum could continue amid Budget expectations and improving global sentiment, while investors remain focused on Q3 earnings.

Asian markets traded mixed after the U.S. Federal Reserve’s policy decision. Japan’s Nikkei 225 gained 0.18 per cent, while the Topix slipped 0.57 per cent. South Korea’s Kospi rose 1.09 per cent and the Kosdaq surged 2.69 per cent. Hong Kong’s Hang Seng index futures indicated a lower opening.

U.S. stock markets ended mostly higher on Wednesday after the Federal Reserve kept interest rates unchanged. The Dow Jones Industrial Average gained 12.19 points, or 0.02 per cent, to 49,015.60. The S&P 500 eased 0.01 per cent to 6,978.03, while the Nasdaq Composite rose 0.17 per cent to 23,857.45. The S&P 500 briefly crossed the 7,000 mark during the session.

Among U.S. stocks, Nvidia rose 1.6 per cent, Micron Technology surged 6.1 per cent, and Intel jumped 11.04 per cent. Texas Instruments gained 9.9 per cent, while Apple declined 0.71 per cent. Tesla shares slipped 0.10 per cent.

The U.S. Federal Reserve kept interest rates unchanged, with the Federal Open Market Committee maintaining the federal funds rate in the range of 3.5 per cent to 3.75 per cent. The central bank provided limited clarity on the timing of future rate cuts.

On the domestic macro front, India’s industrial production grew 7.8 per cent in December 2025, marking the fastest growth in over two years. In comparison, factory output had expanded by 3.7 per cent in December 2024.

Tesla reported a sharp 61 per cent decline in fourth-quarter profits due to weaker auto sales. Net profit fell to USD 840 million for the quarter ended December 31, compared with USD 2.1 billion a year earlier, while revenue declined 3.1 per cent to USD 24.9 billion. The company said its 2026 capital expenditure would exceed USD 20 billion, more than double last year’s USD 8.5 billion.

Microsoft delivered strong fiscal second-quarter results, with total revenue rising 17 per cent to USD 81.27 billion and earnings at USD 5.16 per share, beating estimates. The Azure cloud business posted 38 per cent revenue growth on a constant-currency basis, in line with expectations.

Samsung Electronics reported a more than threefold jump in fourth-quarter operating profit to a record 20 trillion won. Revenue increased 24 per cent year-on-year to 93.8 trillion won, while operating profit from the chip business surged 470 per cent. Mobile division profit, however, declined 10 per cent.

In commodities, gold prices extended their record rally as investors sought safe-haven assets amid geopolitical and economic uncertainty. Spot gold rose 2.1 per cent to USD 5,511.79 per ounce after touching a record high of USD 5,591.61. Spot silver gained 1.3 per cent to USD 118.061 per ounce.

Crude oil prices climbed to a four-month high after geopolitical tensions escalated following warnings to Iran by U.S. President Donald Trump. Brent crude rose 1.23 per cent to USD 68.40 per barrel, while WTI crude gained 0.47 per cent to USD 63.51 per barrel.

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Disclaimer: The article is for informational purposes only and not investment advice.