Indian Equities Edge Higher in Selective Risk-On Trade on India–EU Deal

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

Commerce Minister Piyush Goyal and EU Commissioner for Trade Maros Sefcovic at 13th Round of India-EU FTA negotiations.

By Dehuti Jani

Dehuti Jani is an experienced project manager who also works as an independent financial journalist.

January 27, 2026 at 11:43 AM IST

Indian equity benchmarks closed higher on Tuesday after a choppy session, lifted by optimism around a landmark India–European Union trade deal that will scrap tariffs on most traded goods. The Nifty 50 rose 0.51% to 25,175.40, while the BSE Sensex gained 0.39% to 81,857.48. Volatility spiked to a seven-month high as investors remained cautious amid uncertainty over US tariff policy and ahead of India’s Union Budget due on February 1. Eleven of the 16 major sectors ended in the green, with mid-cap and small-cap indices advancing 0.59% and 0.41%, respectively.

Sentiment was buoyed after details emerged that India would eliminate or reduce tariffs on 96.6% of EU goods over time, while the EU will cut tariffs on 99.5% of imports from India over seven years, a move expected to significantly boost bilateral trade. Sectorally, metals outperformed, with the Nifty Metal index jumping 3%, while media and auto stocks lagged. On the Sensex, Axis Bank, Adani Ports, NTPC, Tech Mahindra, Tata Steel and SBI led gains, while M&M, Asian Paints, Kotak Mahindra Bank, Eternal, ITC and Maruti Suzuki were among the top drags.

Top Movers of the Day

Granules India rose over 4% to ₹589.40 after the company reported a rise in net profit in Q3FY26, with the stock hitting its highest level since January 19.

Eternal (Zomato parent) slipped 3% to a seven-month low of ₹250.40 amid heavy volumes, extending its three-day decline to nearly 12%.

Apex Frozen Foods surged up to 19% after India and the EU signed a free trade agreement, boosting optimism for seafood exporters.

Avantel fell nearly 10% after reporting a weak set of Q3FY26 earnings, disappointing investors.

MCX jumped over 6% to ₹2,428.30 after posting strong Q3FY26 results, aided by higher trading volumes and operating leverage.

Adani Enterprises gained nearly 6% after its defence arm made an additional acquisition in a flight simulation firm and announced a pact with Embraer to build aircraft in India.

DCB Bank surged over 8% to a six-year high of ₹198 after reporting strong growth in net profit and net interest income in Q3FY26.

OneSource Specialty Pharma tanked nearly 18% after releasing weak Q3FY26 results, triggering heavy selling pressure.

Karur Vysya Bankrallied over 10% to a record high after reporting a 39% jump in Q3FY26 net profit to ₹690 crore.

Sona BLW Precision Forgings rose nearly 6% after delivering better-than-expected earnings for Q3FY26.

UltraTech Cement traded higher after reporting a 26.9% YoY jump in Q3FY26 net profit, beating street estimates.

JSW Energy dropped over 9% despite reporting a more-than-twofold YoY rise in Q3FY26 net profit, as margins disappointed.

Welspun Specialty Solutions gained over 6% after swinging to profit in Q3FY26 from a loss a year ago.

IndusInd Bank fell over 4% after reporting a sharp 91% YoY decline in Q3FY26 net profit, despite brokerages maintaining positive outlooks.

Sula Vineyards, Radico Khaitan and United Spirits fell up to 4% after European wines received tariff concessions under the India-EU trade deal.

Waaree Renewable Technologies edged up after approving the acquisition of a 55% stake in ASPL for ₹12.25 billion.

BPCL rose up to 3% after reporting a sharp 98% jump in Q3FY26 net profit, supported by inventory gains and improved margins.

Futures & Options
Nifty February 2026 futures settled at 25,427.20, commanding a premium of 251.80 points over the cash Nifty, which rose 126.75 points (0.51%) to close at 25,175.40. The elevated futures premium signalled improved near-term sentiment after the EU trade deal announcement, even as volatility remained high. The India VIX edged up 1.83% to 14.45, reflecting continued caution ahead of key global and domestic triggers. HDFC Bank, Reliance Industries and Axis Bank were the most actively traded stock futures in the F&O segment, while the February series is set to expire on 24 February 2026.

Bonds
Government bond 10-year benchmark yields closed at 6.7194%, up from the day's low of 6.6443% and Friday's close of 6.6635%. Indian government bonds surrendered early gains on Tuesday as a heavy slate of state debt auctions later in the day overshadowed the Reserve Bank of India's plan to inject liquidity into the banking system through mid-February. State governments raised ₹383 billion at the auctions against a notified amount of ₹398 billion. Demand stayed robust across tenors, with bids exceeding supply by nearly 3.6 times, but cut-off yields held steady in the 7.3%–7.6% range amid cautious sentiment and elevated market volatility.

Forex
The rupee firmed modestly on Tuesday, supported by a broadly weaker US dollar and improved sentiment following the India–EU trade agreement, which is expected to ease tariffs on most Indian exports. The currency closed at 91.72 per dollar, up 0.2% from Friday’s close, recovering slightly after sliding to a record low of 91.9650 in the previous session. Traders noted that the bounce was measured, with importer demand and residual risk aversion continuing to cap sharper gains.

Crypto
Bitcoin traded in a narrow range near the $88,400 level, holding steady after recent sharp selloffs, as Ethereum, XRP and Solana showed similarly muted price action against the dollar. Key near-term support for Bitcoin lies around the $87,500 monthly open, with a break exposing the $86,300 zone, while Ethereum remained above $2,900, still roughly 40% below its all-time high, highlighting the relative underperformance of major cryptocurrencies despite resilience in other risk assets.

US Stock Futures
US stock futures traded higher on Tuesday as investors digested a busy slate of corporate earnings and positioned ahead of the Federal Reserve’s upcoming interest rate decision. S&P 500 futures rose about 0.2% and Nasdaq 100 futures gained 0.5%, reflecting continued strength in technology shares, while Dow Jones futures were largely flat after recent gains in the broader market.

US Treasury Notes
US Treasury yields edged slightly higher on Tuesday as investors positioned ahead of the Federal Reserve’s interest rate decision due on Wednesday. The benchmark 10-year Treasury yield hovered around 4.22%, while the 2-year note was near 3.59%, reflecting caution in the rates market. The Fed’s policy announcement will be the focus this week, with traders widely expecting the central bank to keep its key rate unchanged at a target range of 3.5%–3.75%, while the post-meeting press conference will be closely watched for signals on the future path of monetary policy.

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