Mumbai, Jan 28, 2026, 16:23 IST — Market has closed.
- Nifty 50 climbed 0.66%, while Sensex added 0.60%, pushing the benchmarks higher for the second straight day
- Defence, infrastructure, and a range of mid- and small-cap stocks led gains ahead of the Feb. 1 budget announcement
- Energy stocks climbed as crude prices firmed, while traders kept a close watch on the Fed decision due overnight
India’s key indexes ended Wednesday on a positive note, the Nifty 50 rising 0.66% while the Sensex gained 0.60%. The uptick came as investors held onto momentum fueled by a fresh India-EU trade agreement and the approach of the federal budget. 1
The benchmarks have risen about 1% over the past two sessions following India and the European Union’s trade deal that removes tariffs on over 90% of Indian goods. This stands out as a rare clear macro boost amid investor concerns over export demand and capital flows. “This deal opens a high-value consumer market for Indian exporters,” said Amit Jain, co-founder of Ashika Global Family Office Services, adding it could strengthen investor confidence. 2
Domestic funds shifted ahead of the Feb. 1 budget, following Tuesday’s finance ministry “halwa ceremony” that signaled the last phase of prep. Markets are scrambling to guess which sectors will see a capex boost, and which might miss out. 3
Energy and metals sectors gained ground, boosted by stronger crude and base metal prices. Oil India surged 9.6% intraday, continuing its rally for a second day. ONGC climbed roughly 6% following reports of a shipbuilding deal linked to its joint venture. 4
Capital-expenditure-linked stocks saw action. Bharat Electronics surged 8.9% to hit a record high after reporting a 21% jump in December-quarter profit, alongside a 24% revenue increase, keeping the defence sector in the spotlight. 5
Earnings fueled sharp moves in individual stocks beyond the major index players. Mahindra Logistics jumped after snapping an 11-quarter losing streak to post a profit. Traders highlighted a wave of midcap earnings that came out stronger than expected. 6
Asian Paints didn’t join the rally, dropping after a softer-than-expected December-quarter report. Investors pointed to sluggish volume and demand as concerns heading into the new fiscal year. 7
The Reserve Bank of India pushed forward its plan to buy 1 trillion rupees in government bonds, now set for Jan. 29 and Feb. 5, reacting to a steep jump in yields and tight liquidity. This shift is significant for equities, given how closely banks and major domestic players watch liquidity flows. 8
The rupee closed a touch weaker, showing that month-end dollar demand and rising oil prices can still weigh on the currency, despite steady equity markets. 9
Offshore signals remained in focus as investors awaited the U.S. Federal Reserve’s Jan. 27-28 meeting results, due later Wednesday. Global rate expectations continued to steer flows into and out of emerging markets. 10
The upside scenario isn’t without risks. A sharp crude price swing, a budget that leans less market-friendly, or an unexpected Fed move rattling the dollar and Treasury yields could quickly dampen risk appetite—especially in the more speculative small- and mid-cap segments.
Coming up next: India’s budget will be unveiled on Feb. 1, the RBI plans a bond-buy operation on Jan. 29, and a busy batch of December-quarter earnings will dominate the first week of February.
