The Indian equity market showed an upward movement on January 27 because investors reacted positively to the news of a historic free trade agreement between India and the European Union.
The Sensex increased 320 points which is equivalent to 0.39% and the benchmark index closed at 81,857.48. The Nifty 50 index reached 25,175.40 after gaining 127 points which represents a 0.51% increase. The Nifty Midcap 150 index increased by 0.53% and the Nifty Smallcap 250 index experienced a 0.20% rise which caused all broader markets to end the day with positive results.
The session saw BSE-listed companies achieve a total market capitalisation that exceeded ₹453.7 lakh crore which resulted in an increase of more than ₹2 lakh crore in investor wealth that occurred within a single day.
What lifted the market
The market experienced positive sentiment after Prime Minister Narendra Modi declared that the India-EU free trade agreement negotiations had reached an end. The market gains faced restrictions because foreign institutional investors continued to sell their shares while geopolitical conditions remained uncertain and corporate earnings results for the December quarter showed mixed performance. Investors also remained cautious before the Union Budget 2026 and the US Federal Reserve scheduled announcement of interest rate changes.
Market experts observed that the trade deal generated positive market sentiment but upcoming policy announcements and upcoming earnings reports will determine short-term market direction.
Top gainers and losers
The Nifty 50 index recorded gains for 34 of its stocks. The top gainer for the day Adani Enterprises experienced a 5.30% increase which was followed by Axis Bank’s 5.09% rise and JSW Steel’s 4.55% gain.
The stock value of Mahindra & Mahindra decreased by 4.25% while Asian Paints suffered a 2.80% decline and Kotak Mahindra Bank registered a 2.58% drop.
Sectoral performance
The stock market experienced an upward movement which initiated from the metal sector and extended to banking and IT stocks. The Nifty Metal index increased by 3.07% and Nifty Bank achieved a 1.25% increase. The PSU Bank and Private Bank indices both experienced substantial growth.
The auto sector and FMCG sector and consumer durable stocks declined because of worries about increased competition which would result from the India-EU FTA. Nifty Auto fell 0.93%, FMCG declined 0.60%, and Consumer Durables slipped 0.59%. The media stocks closed the day with losses.
Market activity highlights
The NSE experienced its highest trading volume for Tata Silver ETF and Vodafone Idea and Tata Gold ETF. Market activity on the BSE showed weak performance because more stocks declined than advanced.
Market activities showed ongoing volatility as 80 stocks reached new 52-week highs and 663 stocks established 52-week lows.
Technical outlook
The Nifty 50 index maintains essential support levels at 25,000 and 24,900 according to technical analysts. The index can experience a short-term pullback whenever it remains above these two support levels. The index faces immediate resistance at 25,200 and a breakout above this level will lead the index to reach between 25,300 and 25,350.
The analysts warned that a major drop which goes under 24,900 will damage market sentiment and lead traders to sell their long positions.
