Mumbai, Jan 30, 2026, 16:18 (IST) — After-hours
Indian shares closed lower on Friday, marking their sharpest monthly decline since February 2025 as investors grew cautious ahead of the federal budget. The Nifty 50 dropped 3.1% in January to 25,320.65, while the Sensex fell 3.5% to 82,269.78. Both indexes slipped around 0.4% on the day.
The three-day rally ended as metals dropped roughly 5%, dragging the market down. Oil and gas, banks, IT, and energy sectors also slipped. The Nifty dipped to about 25,214 before investors stepped in to buy the dip late in the session.
Equities slid alongside the rupee, which closed at a record low of 91.9825 per dollar after hitting 91.9875 during the session. The currency’s 2.3% drop in January marks its worst monthly slump since September 2022. Traders said the Reserve Bank of India intervened by selling dollars to prevent the rupee from falling past 92, but pressure may continue without new inflows.
Foreign selling remains a persistent headwind, as doubts over India’s trade negotiations with Washington continue to rattle investors. “The ambiguity over the India-U.S. trade deal and foreign outflows have significantly affected the rupee and weighed on equity markets,” said Mitesh Dalal, head of broking at Sanctum Wealth. Reuters
Friday’s dip came despite a stronger week overall: the Nifty climbed 1.06% and the Sensex added 0.89%, per NDTV Profit’s closing numbers. On the day, ICICI Bank and HDFC Bank dragged the Nifty down, while SBI, M&M, ITC, Nestle, and Reliance managed gains.
In metals, Tata Steel dropped 4.57% to 193.10 rupees, underperforming the broader market as sellers targeted cyclicals near the close.
Indian exchanges gear up for a quick turnaround, opening Sunday, Feb. 1, to coincide with the Union Budget announcement. Pre-market trading is set from 9:00 a.m. to 9:08 a.m., followed by regular hours between 9:15 a.m. and 3:30 p.m., Business Standard reported.
Earnings sparked notable stock moves. Nestle India reported a 46% rise in quarterly profit, reaching 10.18 billion rupees, while revenue climbed nearly 19% to 56.67 billion rupees. “The company posted record sales and its strongest volume growth in nearly five years,” said Chairman and Managing Director Manish Tiwary. Shares jumped as much as 4%. Reuters
Ambuja Cements saw profits plunge 88.4% to 2.04 billion rupees, hit by rising costs and weaker prices, even as revenue climbed 21% thanks to a 17% increase in volumes. Shares dropped roughly 5%. The company also announced that Managing Director Ajay Kapur will resign effective Jan. 31.
Shares of South Indian Bank tumbled nearly 19% to about 36 rupees after the lender announced that Managing Director and CEO P.R. Seshadri will not seek reappointment. He will stay on until September 30, 2026, while the board starts searching for his replacement, LiveMint reported.
The Nifty kicked off at 25,247.55, reaching a peak of 25,369.40 and dipping to a low of 25,214.30 before settling at 25,320.65, per data from Investing.com.
Sunday still holds the potential to shake things up. Any unexpected hint on fiscal discipline, government capital spending, or sector taxes could shift rate-sensitive stocks and consumer shares sharply. Meanwhile, a continued dip in the rupee might trigger renewed outflows and squeeze financial conditions tighter.
Investors are keeping an eye on settlement issues ahead of Budget day. The Economic Times pointed out that because of a Sunday session, there could be temporary limits on quick buy-and-sell trades. The market’s initial reaction to the budget will likely emerge during the first hour of trading on Feb. 1, with further moves expected once regular sessions resume the following week.
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