Here's how stock market reacted to India Economic Survey 2026. Rupee breaches new low against US Dollar

Finance Minister Nirmala Sitharaman presented the Economic Survey in Parliament on Thursday (January 29), setting the stage for the Union Budget scheduled for Sunday (February 1). The upcoming Budget will be her ninth in a row, an unprecedented milestone. Traditionally released ahead of the Budget, the Economic Survey offers a glimpse of the economy and outlines the government’s assessment before policy announcements on taxation, spending, and reforms.

Indian equity markets rebounded sharply in the latter half of Thursday’s session after a weak start, with benchmark indices recovering from intraday lows as investors responded positively to the Survey’s outlook. The document reaffirmed expectations of stable economic growth, sustained capital expenditure, and a continued emphasis on manufacturing and fiscal discipline. The BSE Sensex jumped over 900 points from its day’s low of 81,707.94 to touch an intraday high of 82,615. By 2:00 pm, the index was trading at 82,615, up 267 points or 0.33 per cent. The NSE Nifty also reclaimed lost ground, rising above 25,400 and trading at 25,433.60, up 91.55 points or 0.34 per cent.

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Markets had opened lower amid mixed global signals, with the Sensex hitting its lowest level around mid-morning and the Nifty briefly slipping below 25,200. Sentiment turned decisively positive post-noon as the Survey highlighted the government’s continued focus on infrastructure-led growth and prudent fiscal management.

Metal stocks lead the rally

Metal stocks spearheaded the recovery, buoyed by optimism around infrastructure spending and industrial demand highlighted in the Survey. The BSE Metal index surged 2.47 per cent to scale a record high. Hindustan Copper hit a 20 per cent upper circuit, while Nalco rallied 5.75 per cent. Vedanta climbed 3.8 per cent, NMDC gained 3.79 per cent, Jindal Steel rose 3.66 per cent, and Tata Steel advanced 3.61 per cent. Broader markets also recovered from early losses, though performance remained mixed. The BSE 150 MidCap index was marginally lower by 0.05 per cent, while the BSE 250 SmallCap index continued to lag, declining close to 0.5 per cent.

Rupee falls to record low

The rupee fell to a record low of 92.00 against the US dollar in early trade on Thursday (January 29), pressured by persistent demand for the greenback and a cautious global sentiment. Currency market participants said the weakness followed a rebound in the dollar index from its 4.5-year lows after the US Federal Reserve left interest rates unchanged at the end of its first policy meeting of the year. On Wednesday (January 28), the rupee had already closed 31 paise lower, matching its weakest-ever closing level of 91.99 against the dollar.