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Mumbai, Maharashtra | January 29 :
Indian equity markets opened on a flat note on Tuesday as investors adopted a wait-and-watch approach ahead of the upcoming Union Budget 2026, with market volatility showing signs of easing.
The benchmark Nifty 50 opened at 25,345, registering a marginal gain of 2.25 points or 0.01%. Meanwhile, the BSE Sensex began the session at 82,368.96, up 24.28 points or 0.03%.
Volatility Cools Ahead of Budget Announcement
Market participants remained cautious as they positioned themselves ahead of the February 1 Budget presentation. Indicators suggested stable but guarded sentiment across the market.
Ajay Bagga, Banking and Market Expert, told ANI that volatility is easing, with India VIX settling near 13.5–14. He added that the Nifty Put-Call Ratio (PCR) stands at 0.70, indicating balanced positioning ahead of the Budget.
“Investors are watching the Budget closely, with expectations of a 4.2% fiscal deficit target, continued infrastructure capital expenditure, and possible incentives focused on artificial intelligence,” Bagga said.
Currencies, Oil, and Metals in Focus
According to Bagga, global macro trends are also influencing market sentiment.
“Currencies, oil, and metals are the key stories of the day. US Dollar movements are impacting policy outlooks, oil prices are rising due to heightened geopolitical tensions in the Middle East, and metals are witnessing a strong year,” he added.
Broader Market Shows Mixed Trend
On the National Stock Exchange (NSE), broader indices displayed mixed performance. The Nifty 100 declined 0.19%, while the Nifty Midcap 100 edged up 0.10%. The Nifty Smallcap index outperformed, gaining 0.51%.
Sectoral indices mostly opened in the red. The Nifty Auto index fell 0.70%, Nifty FMCG declined 0.54%, and Nifty IT dropped 0.95% in early trade. In contrast, Nifty Metal and PSU Bank indices traded in positive territory.
Global Markets Remain Mixed
Global markets reflected a combination of caution and resilience following the first policy meeting of the year by the US Federal Reserve, which kept interest rates unchanged and signalled a data-dependent approach amid persistent inflation concerns.
In the US, the S&P 500 briefly crossed the 7,000 mark before closing flat, while the Nasdaq gained 0.17%, supported by buying in AI-related stocks.
Commodities and Asian Markets
Gold prices touched record highs amid safe-haven demand and a weaker US Dollar, while oil prices climbed to a four-month peak, with Brent crude nearing USD 68.40 per barrel due to geopolitical tensions and lower US inventories.
Asian markets showed mixed trends. Japan’s Nikkei 225 rose 0.03%, Hong Kong’s Hang Seng gained 0.6%, South Korea’s KOSPI advanced 0.98%, while Taiwan’s weighted index declined 0.48%.
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