Stock Market Today: Why is market falling today ahead of Economic Survey 2026
The Indian stock market started the trading day on January 29 on a shaky note, as investors sold stocks amid rising international conflict and ahead of the scheduled release of the Economic Survey of India. Profit booking dominated the morning session, keeping traders on edge as they searched for fresh cues on the economy’s direction. The Sensex lost more than 600 points, slipping 0.80% to an intraday low of 81,707.94, while the Nifty 50 declined 0.70% to 25,159.80. With global uncertainty lingering and key policy signals expected within hours, markets opted for caution, reminding investors that heavy news flow often translates into heightened volatility.
Why Is the Stock Market Down? Here’s What’s Spooking Investors
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Persistent FII Selling Pressure
Foreign institutional investors continue to sell Indian stocks, having offloaded more than ₹43,000 crore during January 2023. Experts warn that unless the Budget delivers a strong surprise, this selling pressure could continue to weigh on the market. -
Crude Oil Prices Jump
Brent crude prices have risen by almost 2%, bringing them close to the $70 per barrel mark. Since India relies heavily on oil imports, elevated prices could strain government finances, push up inflation, weaken the rupee, and hurt corporate profitability. -
Rupee Slides to a Record Low
The Indian rupee has hit an all-time low of 92 against the US dollar, creating a negative market environment. Persistent capital outflows, rising crude oil prices, and global political instability are pressuring the currency. A weaker rupee may further discourage foreign investors. -
Caution Ahead of Union Budget 2026
Investors are staying cautious ahead of the Budget announcement, expecting limited major financial commitments. While growth support is already in place, concerns remain over the lack of fresh triggers for short-term market gains. -
Rising US–Iran Geopolitical Tensions
Escalating tensions between the US and Iran have increased global anxiety as both sides ramp up military activity. Iran’s warning of a strong response to any US attack has revived fears of a possible war, raising concerns over higher fuel costs, rising inflation, and disruptions to global economic growth.
Sell-Off Spreads, Wallets Feel the Pinch
The pain on Dalal Street extended beyond the main market indices, affecting all market segments. Mid-cap and small-cap stocks joined the slide, with BSE’s broader indices slipping up to 0.70%, flashing a clear “risk-off” signal. Investors slowed activity as they focused on protecting their investments, but the cost was steep. The stock market lost more than ₹3 lakh crore in investor wealth during the first hour of trading. The total market capitalisation of BSE-listed companies stood at ₹456.3 lakh crore at 10:15 am, down from ₹459.5 lakh crore in the previous session. The market showed that when panic sets in, it impacts all segments, shifting the focus firmly from return-seeking to capital protection.