Last Updated on January 28, 2026 10:27 pm by BIZNAMA NEWS
BIZNAMA DESK
Indian equity benchmarks extended gains on Wednesday, buoyed by optimism from the landmark free trade agreement with the European Union and anticipation of targeted measures in the upcoming Union Budget. The Sensex climbed 487.20 points (0.60%) to 82,344.68, while the Nifty 50 advanced 167.35 points (0.66%) to 25,342.75. Together, the indices have gained nearly 1% over two sessions.
Energy & Metals
Energy stocks led the rally, rising 4.2% as crude prices firmed. Metals followed with a 2.3% gain, supported by higher base metal prices. The trade pact, which eliminates tariffs on over 90% of Indian goods, is expected to boost export-oriented companies in these sectors.
Defence & Public Sector
Defence stocks soared, with the index jumping 7%. Bharat Electronics surged 8.9% to a record high on strong quarterly profits. Public sector enterprises advanced 4.6%, reflecting investor confidence in government-linked capital expenditure.
Infrastructure & Capital Goods
Infrastructure stocks rose 1.1%, aided by expectations of budgetary support for capex. Companies like L&T, set to report earnings, remain in focus as investors eye project pipelines.
Broader Markets
Mid-cap and small-cap indices outperformed, rising 1.7% and 2.3% respectively, signaling strong retail and domestic institutional participation. Short-covering in derivatives-heavy counters also supported the rebound.
Consumer & Services
Asian Paints fell 4.2% after reporting subdued volume growth in the December quarter, highlighting demand challenges in discretionary consumption. In contrast, Mahindra Logistics surged 15% and Motilal Oswal Financial Services gained 7.5% on upbeat earnings, underscoring resilience in services and financials.
Currency & Bonds
The rupee slipped 0.07% against the U.S. dollar to 91.7825, pressured by importer demand despite a weaker greenback globally. Benchmark 10-year government bond yields eased 2 basis points to 6.6997%, while swap rates also declined, reflecting stable liquidity conditions.
Money Market
Overnight call money stood at 4.9%, with TREPS at 5.43%, indicating balanced short-term funding costs.
Global & Policy Watch
Investors await the U.S. Federal Reserve’s policy decision, where rates are expected to remain unchanged. Meanwhile, the India–EU trade pact is seen as a medium-term positive for supply-chain diversification.
Outlook
While sentiment is upbeat, headwinds persist from a weak rupee, continued foreign portfolio outflows, and geopolitical risks. The Union Budget is expected to be a low-impact event, with markets focusing on targeted measures rather than broad stimulus.
