Market Bleeds Before Budget! Metals Crash 5%, Rupee Hits ₹92 (Jan 30 Update)
The market is nervous ahead of the Union Budget! In today's update, we break down why the Sensex and Nifty snapped their winning streak and why Metal stocks like Hindustan Zinc and Vedanta witnessed a massive crash. Plus, Silver hits a lower circuit and the Rupee touches a historic low.
Market Snapshot
1. Sensex and Nifty End in the Red Benchmark indices snapped their three-day winning streak due to profit booking ahead of the Union Budget.
- Sensex: Closed down 296.59 points (0.36%) at 82,269.78.
- Nifty 50: Ended lower by 98.25 points (0.39%) at 25,320.65.
2. Metal Stocks Witness Severe Crash The Nifty Metal index was the worst performer, crashing over 5%. Major losers included Hindustan Zinc (down ~12%), Vedanta (down ~11%), and Hindalco (down ~6%) amid a global sell-off in commodities.
3. Silver Hits Lower Circuit In the commodity market, MCX Silver futures plummeted, hitting a 15% lower circuit. This follows a record high yesterday, driven by extreme volatility and global profit-taking.
4. Rupee Hits Record Low The Indian Rupee weakened further, touching a fresh record low of approximately ₹92 against the US Dollar, driven by FII outflows and dollar strength.
Corporate News & Q3 Results
5. South Indian Bank Plunges 18% Shares of South Indian Bank witnessed their steepest one-day drop, falling over 18%. The sell-off was triggered by the announcement that MD & CEO P.R. Seshadri will not seek reappointment after his term ends in September 2026.
6. Paytm Shares Fall Despite Growth One 97 Communications (Paytm) shares dropped about 5% today. Despite reporting a 20% rise in Q3 revenue to ₹2,194 crore, investor sentiment remained weak.
7. Bank of Baroda Q3 Profit Rises Bank of Baroda reported a healthy Q3 performance with a rise in net profit and improved asset quality. Loan growth also beat street guidance, though the stock saw minor profit booking (-1%).
8. Nestle India Top Gainer Nestle India was the top gainer on the Nifty 50, rising 3.46% to ₹1,332.40, as investors shifted focus to defensive FMCG stocks ahead of the Budget.
9. Intellect Design Profit Plunges Intellect Design Arena shares tanked after the company reported a 72% quarter-on-quarter drop in Q3 profit, attributed to one-time labor costs.
10. SpiceJet Expands Network SpiceJet announced the launch of daily flights connecting Imphal with Kolkata, Guwahati, and Mumbai, aiming to strengthen regional connectivity.
11. Tata Power Commissions New Lines Tata Power announced the commissioning of two 765 kV transmission corridors in Uttar Pradesh, facilitating the evacuation of 3,000 MW of power.
12. Insecticides India Tumbles Shares of Insecticides India fell over 9% after the company reported a drop in Q3 profits and narrowing margins.
13. Ajanta Pharma Posts Growth Ajanta Pharma reported double-digit growth in its Q3 results, backed by a 20% rise in revenue, signaling strong operational performance.
14. Bajaj Housing Finance Gains Bajaj Housing Finance bucked the weak market trend, closing 3.19% higher at ₹90.83.
Economy & Regulatory Updates
15. Special Budget Session on Sunday The stock markets (BSE & NSE) will remain open this Sunday, February 1, 2026, for a special trading session during the presentation of the Union Budget 2026-27.
16. Economic Survey Projects 7% Growth The Economic Survey 2025-26, tabled yesterday, projected a GDP growth of 6.8% to 7.2% for the upcoming fiscal year, providing a medium-term boost to sentiment despite today's volatility.
17. US Fed Holds Rates Global sentiment was tepid as the US Federal Reserve kept interest rates unchanged in its latest policy meeting, dampening hopes for an immediate rate cut.
18. FII Selling Persists Foreign Institutional Investors (FIIs) continued to be net sellers, weighing down banking and IT stocks, with HDFC Bank and TCS ending in the red.
19. India VIX Rises The volatility index, India VIX, rose nearly 2% to settle above 13.60, indicating heightened nervousness among traders ahead of the Budget announcement.
