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Indian Stocks Extend January Slide on FPI Selling as Gold Tops $5,000

Investors now look to the Fed decision, then India’s Feb. 1 Budget, for direction.

Overview

  • Sensex and Nifty are down over 4% this month after a 2.4%–2.5% weekly drop, with broader indices falling more sharply.
  • Foreign portfolio investors have sold about Rs 33,958 crore in January, contributing to a roughly Rs 16 trillion weekly erosion in BSE market value.
  • The rupee hovered near 92 per dollar as safe-haven demand lifted gold above $5,000 an ounce and pushed silver to record highs.
  • Global risk drivers included President Trump’s tariff threats aimed at Canada and the unresolved Greenland dispute, alongside uncertainty over an India–US trade deal.
  • This week brings the Fed’s Jan. 27–28 meeting, where rates are widely expected to be held steady, a heavy slate of US big-tech earnings, and live trading for India’s Feb. 1 Union Budget.