Equities Extend Gains on EU Trade Deal Optimism, Budget-Linked Stocks Lead

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

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By Dehuti Jani

January 28, 2026 at 11:35 AM IST

Indian equity benchmarks closed higher on Wednesday, extending the previous session’s rally as optimism around the landmark India–European Union free trade agreement continued to buoy sentiment, while capital expenditure–linked stocks gained ahead of the Union Budget. The Nifty50 rose 0.66% to 25,342.75, while the BSE Sensex advanced 0.60% to 82,344.68, with both indices now up about 1% over the past two sessions. Markets opened strongly but pared part of the early gains as volatility picked up amid ongoing Q3FY26 earnings reactions.

Buying was led by defence, energy and infrastructure names, with BEL surging nearly 9% to top the gainers, alongside strength in ONGC, Coal India, Hindalco, Power Grid, Adani Enterprises and M&M. On the downside, Tata Consumer Products slid about 4.5%, while Asian Paints, Maruti Suzuki, Sun Pharma, Infosys and Eicher Motors also weighed on the indices. Broader markets outperformed the benchmarks, with the Nifty Midcap 100 and Nifty Smallcap 100 rising 1.66% and 2.26%, respectively, reflecting improved risk appetite beyond frontline stocks.

Top Movers of the Day

Asian Paints shares fell up to 5% after the company reported a weak Q3 performance, with margins under pressure due to higher input costs and muted demand outlook.

Vodafone Idea stock surged as much as 7% after reports of progress on fund-raising plans and optimism around government support measures.

Vedanta shares declined nearly 4% amid profit booking, tracking weakness in metal prices and concerns over leverage despite stable operational performance.

Hindustan Copper extended its sharp rally, jumping 13.7% on Wednesday and nearly 20% over two sessions, after emerging as the preferred bidder for a new copper block in Madhya Pradesh.

Oil India shares surged nearly 10%, extending gains for a second straight session, tracking a sharp rise in global crude prices amid heightened geopolitical tensions and supply concerns.

Tata Motors (Commercial Vehicles) hit a fresh high of ₹460.20, rising 4% ahead of its December-quarter earnings, as optimism built around volumes and margin outlook.

RPG Life Sciences shares slumped over 10% after the company reported a decline in net profit for Q3FY26, with the stock falling to an intraday low of ₹1,880 on the NSE.

Fino Payments Bank surged up to 8.8% after the RBI approved the re-appointment of Rishi Gupta as Managing Director & CEO for another three-year term starting May 2026.

Gopal Snacks rallied nearly 9% after reporting a 191.2% YoY jump in Q3FY26 profit, aided by exceptional items, along with the announcement of a dividend.

IT stocks such as Infosys and Tech Mahindra traded lower, down up to 2%, as investors remained cautious ahead of key US macro data and mixed global tech cues.

Banking stocks were mixed, with Axis Bank and ICICI Bank seeing mild gains, while PSU banks underperformed on valuation concerns after the recent rally.

Futures & Options
Nifty February 2026 futures settled closed at 25,456, a premium of 113.25 points over the cash Nifty, which rose 167.35 points (0.66%) to 25,342.75, reflecting positive rollover sentiment. Market volatility cooled, with India VIX easing 6.41% to 13.53, while Bharat Electronics, HDFC Bank and Maruti Suzuki India were the most actively traded stock futures. The February 2026 F&O contracts are set to expire on 24 February 2026.

Bonds
Government bond 10-year benchmark yields eased on Wednesday as traders pared bearish positions after the RBI advanced its open market purchase schedule. The benchmark 10-year yield slipped to 6.7026%, retreating from Tuesday’s 11-month high close of 6.7194%, as expectations of improved liquidity and RBI demand supported prices. The central bank announced it will now buy ₹1 trillion of government bonds in two tranches on January 29 and February 5, a week earlier than planned, reinforcing near-term support for the bond market.

Forex
The rupee ended marginally weaker on Wednesday, underperforming most Asian peers, as dollar demand from maturing non-deliverable forward positions and month-end importer buying weighed on the currency, despite support from a broadly weaker US dollar. The rupee closed at 91.7825 per dollar, down 0.1% from the previous session’s 91.72, and is now down about 2% so far in January, making it the worst-performing Asian currency this month amid persistent foreign portfolio outflows from equities, which have crossed $4 billion.

Crypto
Bitcoin climbed above the $89,000 mark on Wednesday but remained largely range bound as investors weighed a softer US dollar and surging gold prices against caution ahead of the US Federal Reserve’s policy decision. The world’s largest cryptocurrency was last up 1.1% at $89,235.8, while broader sentiment stayed guarded amid FOMC-related uncertainty. Ethereum outperformed, rising 2.6% to $3,006.9, with most major altcoins also tracking Bitcoin’s modest gains.

US Stock Futures
US stock futures edged higher on Wednesday, led by a strong move in technology shares as investors positioned ahead of the Federal Reserve’s policy decision and awaited potentially market-moving earnings from mega cap tech companies. Nasdaq 100 futures jumped about 0.8%, while S&P 500 futures rose 0.3%, hovering near record territory after the benchmark’s latest all-time closing high. Dow Jones futures were little changed, reflecting a cautious tone outside the tech space as markets braced for key policy signals.

US Treasury Notes
US Treasury yields were largely steady on Wednesday as investors stayed on the sidelines ahead of the Federal Reserve’s policy decision later in the day. The benchmark 10-year yield hovered around 4.25%, while the 2-year yield held near 3.58%, reflecting a wait-and-watch stance. Markets broadly expect the Fed to keep rates unchanged, with attention squarely on the post-meeting guidance for cues on the timing and pace of future easing amid mixed economic data and lingering uncertainty around potential changes in Fed leadership.

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