Economic Survey Optimism Triggers Sharp Rebound; Nifty Reclaims 25,400

Market Snapshot

The Indian stock market witnessed a day of high volatility on Thursday, January 29, 2026, as investors navigated mixed global cues and significant domestic policy announcements. After a weak start following the US Federal Reserve's decision to hold interest rates steady, the domestic indices slipped sharply in early trade. However, the mood shifted dramatically in the afternoon session after the Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2025–26 in Parliament.

• Nifty 50: Closed at 25,418.90, up by 76.15 points or 0.30%.
• BSE Sensex: Settled at 82,566.37, gaining 221.69 points or 0.27%.
• Nifty Bank: Ended at 59,957.85, up 0.60%.
• India VIX: Eased by 1.14% to 13.37, indicating reduced fear among traders.

Institutional Flows: Cash Market

Institutional participation remained a critical pillar of support for the market's recovery. According to provisional data from the NSE, Foreign Institutional Investors (FIIs) have shown a nascent reversal in their selling strategy, while Domestic Institutional Investors (DIIs) continue to provide a robust liquidity cushion.

• FII Activity: Foreign investors turned net buyers for the second consecutive session, injecting a net ₹480.26 crore into the cash market.
• DII Activity: Domestic institutions maintained their aggressive buying stance, recording a net purchase of ₹3,360.59 crore.
• Combined Impact: The net institutional inflow of approximately ₹3,841 crore helped indices recover from their intraday lows of 25,159.80 (Nifty) and 81,707.94 (Sensex).

Derivatives Market Activity

The derivatives segment reflected a "wait-and-watch" approach ahead of the Union Budget scheduled for Sunday, February 1.

• Put-Call Ratio (PCR): The Nifty PCR moved to 0.97, suggesting a rise in put writing as traders found comfort at lower support levels.
• Open Interest (OI): The highest call OI remains concentrated at the 26,000 level, while put OI is highest at 25,000, defining the immediate trading range.
• Nifty Bank Outperformance: Banking stocks showed relative strength, with Nifty Bank gaining 0.60%, led by Axis Bank (+3.33%) and ICICI Bank (+1.2%).

Key Drivers and Outlook

The primary catalyst for the day’s rebound was the Economic Survey 2025–26, which projected India's GDP growth at 6.8% to 7.2% for the next fiscal year. The survey emphasized improving macro fundamentals and resilient manufacturing, which offset concerns over the rupee hitting a record low of 91.96 against the US dollar during the session.

• Sectoral Performance: Metals were the top gainers, led by Tata Steel (+4.49%) and JSW Steel. Heavyweight Larsen & Toubro surged 3.80% following strong Q3 results.
• Laggards: IT and Auto sectors faced pressure, with Asian Paints, IndiGo, and Maruti Suzuki ending as the top losers.
• Budget Countdown: All eyes are now on the Union Budget 2026. A special trading session has been announced for Sunday, February 1, to allow the markets to react to the government's fiscal roadmap.

TAGS: FII, DII, Stock Market, Institutional Investors, Nifty, Sensex

Tags: FII DII Stock Market Institutional Investors Nifty Sensex