Sensex Bounces 850 Pts Reclaiming 82,500, Nifty Crosses 25,400

29 January 2026 was the day of extreme "seesaw" action on Dalal Street. The markets began as a cautious session, with indices slipping deep into the red. But the markets ended with a dramatic late-afternoon surge. The bulls seem to have managed to grasp back nearly all losses, leading to a winning finish.

The Sensex bounced back ~850 points from the day’s low and settled at 82,566.37, up 221.69 points (0.27%). The Nifty 50 followed a similar script, reclaiming the 25,400 level to end at 25,418.90.

The benchmarks looked healthy by the close, but the Market Breadth (the ratio of advancing stocks to declining ones) remained weak. Roughly 2,424 stocks ended lower against 1,640 gainers. This difference suggests that the broader market sentiment is still led by pre-budget caution.

Key Reasons Behind the Market’s Comeback

Investors were left wondering what led to the sudden 850-point U-turn. Here are the three main reasons for the market recovery.

• FIIs Returning - It was for the first time after 15 sessions that the Foreign Institutional Investors (FIIs) became net buyers. FIIs purchased shares worth ₹480 Cr. The investment amount might seem minor, but the shift in stance is a huge sentiment booster. This return of the FIIs was combined with the ₹3,360 Cr. inflow from Domestic Institutional Investors (DIIs). Therefore, the "buy on dips" strategy by domestic and foreign institutions clearly marked the rally.

• Rumours of a US-India Trade Deal - After the landmark deal with the EU earlier this week, rumours started circulating about a potential trade agreement with the US. These rumours of a potential deal could have cheered the market sentiment.

• Monthly F&O Expiry Volatility - Today was the monthly F&O (Futures & Options) Expiry for the Sensex. Expiry Day is the last day for traders to settle their derivative contracts. This can lead to "short-covering," where traders who expect the market to go down are forced to buy shares back to close their positions. Thus, they automatically push prices higher.

Sectoral Performance: Metals Shine, Auto Drags

The market seemed to clearly favour cyclical sectors. Cyclical sectors are industries that rise and fall with the economic cycle.

• Metals & Mining -This was the standout sector. Hindustan Copper surged 20% to an all-time high, doubling its stock value in only two months. Other companies like National Aluminium Company (NALCO) (+3%), Hindalco (+1.8%) and Hindustan Zinc (+1%) also posted strong gains.

• Oil & Gas and Energy - Stocks of Oil & Gas and Energy companies also gained traction. Crude oil prices rallied to four-months high. The crude oil price rise was mainly due to a severe winter storm in the US and geopolitical tensions involving Iran.

• **Laggards **- Sectors like Pharma, Public Sector Undertaking (PSU) Bank, IT, Fast Moving Consumer Goods (FMCG) and Auto ended lower by 0.7% to 1%. The sectoral decline could be due to investors booking profits in defensive stocks to shift capital into high-growth metal stocks.

Economic Survey: India’s Growth Engine Accelerates

Ahead of the Union Budget, the Government of India (GoI) tabled the Economic Survey 2025-26. The survey figures provided a dose of fundamental optimism. The survey revised India’s medium-term growth potential to 7%, up from the previous 6.5%.

However, the survey did flag a concern: gold imports jumped 27.4% YoY in FY 2025. This added significant pressure to the trade deficit.

Gold and Silver Hit Lifetime Highs

The bullion market witnessed a historic rally on 29 January 2026.

• Gold prices in India hit a record ₹1.80 lakh/10 grams.

• Silver futures crossed the ₹4 lakh/kg mark, jumping 5.73% in a single session.

Why the surge? Rising geopolitical tensions and uncertainty surrounding global trade policies are driving the prices.

Looking Ahead

The India VIX (the "fear gauge") rose 2%, staying above 12, which means that investors can expect more choppy waters.

All eyes are now on the Union Budget, which will be presented this Sunday, 1 February 2026. Markets will hold a special trading session on Sunday to react to the finance minister’s announcements.

Source:

NSE

Moneycontrol

Moneycontrol 1

Moneycontrol 2

Livemint

CNBC TV 18

CNBC TV 18 1

Fortune India

Economic Times