Nifty 50 and Sensex rebound from early losses to close higher as the India–EU trade deal lifts sentiment. Read our expert post-market analysis for January 27, 2026.
Market Recap: Bulls Fight Back
The Indian equity markets staged a powerful comeback on Tuesday, January 27, 2026, snapping last week’s sell-off streak. After a shaky start, both the Sensex and Nifty 50 surged into the green, fueled by the historic announcement of the India–European Union Free Trade Agreement (FTA).
Investor sentiment flipped from cautious to optimistic, with the “Mother of All Deals” offsetting concerns over US tariff threats. Metals and Banking stocks led the rally, while Autos faced pressure amid fears of increased competition from European manufacturers.
🔹 Benchmark Index Moves
| Index | Closing Level | Change (Pts) | % Change |
|---|---|---|---|
| Nifty 50 | 25,175.40 | +126.75 | +0.51% |
| BSE Sensex | 81,857.48 | +319.78 | +0.39% |
| Bank Nifty | 58,420.15 | +722.00 | +1.25% |
| Nifty Midcap 100 | 56,120.45 | +280.50 | +0.50% |
Domestic investors showed strong “buy on dips” conviction, pushing indices near the day’s highs.
🚀 Top Gainers & 📉 Losers
The Winners
- Adani Enterprises: ₹1,963.00 (+5.30%) – Led the Adani pack’s recovery.
- Axis Bank: ₹1,322.00 (+5.09%) – Jumped on robust Q3 net profit of ₹7,010 Cr.
- JSW Steel: ₹1,223.20 (+4.55%) – Benefited from EU trade optimism.
- Adani Ports: ₹1,365.00 (+4.33%) – Strong rebound after heavy selling.
The Laggards
- Mahindra & Mahindra: ₹3,392.90 (-4.25%) – Hit by EU auto competition fears.
- Asian Paints: ₹2,628.00 (-2.80%) – Continued profit booking.
- Kotak Mahindra Bank: ₹411.90 (-2.58%) – Weakness despite sector strength.
- Maruti Suzuki: ₹15,237.00 (-1.50%) – Auto sector pressure remains evident.
🌍 Global Market Snapshot
- US Markets: Dow (+0.64%) and S&P 500 (+0.50%) rose ahead of Fed’s FOMC decision.
- Europe: Higher on India–EU FTA optimism, reflecting confidence in Brussels.
- Asia: Mixed; Nikkei (-0.24%), KOSPI (+1.5%) despite US tariff threats.
📰 Latest News Highlights
- India–EU FTA Sealed: Expected to double exports by 2032.
- Axis Bank Q3 Results: Net profit up 4% YoY, lifting Bank Nifty.
- Gold Breaks $5,100: Safe-haven demand pushes gold to historic highs; silver trades near $117.
- US Tariff Relief: Treasury hints at rollbacks, easing pressure on Indian exporters.
📌 Key Topics & Upcoming Events
- Ongoing IPOs:
- Kasturi Metal Composite (SME) – Open until Jan 29.
- Accretion Nutraveda (SME) – Opens Jan 28.
- Kanishk Aluminium (SME) – Opens Jan 28.
- Budget 2026: Finance Minister Nirmala Sitharaman to present on Feb 1; expectations high for rural stimulus and tax rationalization.
⚡ Volatility & Institutional Flow
- India VIX: 14.45 (+1.85%) – Slight uptick signals hedging ahead of Budget and Fed meeting.
- FII/DII Data:
- FIIs: Net Sellers (~₹4,113 Cr)
- DIIs: Net Buyers (~₹4,102 Cr) Domestic liquidity continues to cushion foreign outflows.
FAQs
Q1: Why did the Indian stock market go up today? The rally was driven by the India–EU trade deal and strong Axis Bank Q3 results.
Q2: What is the impact of the India–EU trade deal on stocks? Positive for Metals, IT, and Textiles; short-term pressure on Autos due to lower import duties.
Q3: Is Nifty 50 still in a downtrend? Technically below its 200-DMA, but reclaiming 25,150 is a short-term positive.
Q4: When is the Union Budget 2026? Scheduled for February 1, 2026.
Q5: Why are gold prices rising so fast in 2026? Geopolitical tensions and reserve diversification pushed gold above $5,100/oz.
Q6: What is the current support level for Nifty? Immediate support at 24,900; major psychological support at 24,700.
Q7: Should I invest in IPOs currently open? SME IPOs are active, but check GMP trends and fundamentals before applying.
📝 Final Thoughts & Investment Perspective
Today’s rebound was a classic “news-driven” rally. The India–EU trade deal is a structural long-term positive, but caution remains as Nifty trades below its 200-DMA.
Expect resistance near 25,400–25,500. Investors should stay stock-specific:
- Banking: Strong after Axis Bank’s results.
- Metals: Back in favor with EU optimism.
- Autos: Facing short-term headwinds.
With the Union Budget days away, volatility will remain high. Use dips to accumulate quality blue-chips rather than chasing speculative momentum.
Short-term Outlook: Volatile/Neutral Support: 24,920 | Resistance: 25,350
⚠️ Disclaimer: This report is for educational purposes only. Not investment advice. Please consult a SEBI-registered advisor before making decisions.
