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.
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. Reuters
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. The Times of India
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.
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.
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.
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.
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.
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.
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.
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.
