Summary of Key Indices
| Index | Close | Change* |
|---|---|---|
| BSE Sensex | 81,857.48 | +319.78 points (+0.39 %) |
| NSE Nifty 50 | 25,175.40 | +126.75 points (+0.51 %) |
| Nifty Bank | ≈ 59,000 | Rebounded after previous session’s sell‑off; support ~58,800; resistance ~59,500 |
| Nifty Midcap 100 | Up ~0.59 % | Mid‑caps gained after recent weakness |
| Nifty Smallcap 100 | Up ~0.41 % | Small‑caps also firmed up |
*Changes are approximate and measured from the previous trading session (Friday, 23 Jan 2026); markets were closed on Monday for Republic Day.
Sectoral Performance
| Sector/Index | Trend | Notes |
|---|---|---|
| Metals | +3 % | Commodity strength and hopes of lower EU tariffs fueled buying in steel & mining stocks. |
| Banks | Positive | Strong quarterly numbers from private lenders (notably Axis Bank) supported the sector. |
| Capital goods & infrastructure | Higher | Infrastructure spending expectations ahead of the Union Budget and an India–EU trade deal lifted stocks. |
| IT & Tech | Flat-to-positive | Defensive buying continued; HCL Tech led intraday gains. |
| Media | ‑1.4 % | Profit‑taking and soft advertising outlook dragged the Nifty Media index. |
| Auto | ‑0.9 % | Auto stocks fell as investors rotated out of consumer/auto names; Mahindra & Mahindra and Maruti were notable laggards. |
| FMCG and Consumer Durables | Slightly negative | Profit-booking ahead of Budget. |
Market Breadth & Other Statistics
- Market breadth was mixed: roughly 1,900 stocks advanced while about 2,200 declined and ~160 were unchanged on the broader market, reflecting selective buying despite headline gains.
- Large‑cap stocks drove the indices higher; mid‑caps and small‑caps participated but with smaller gains.
- The Indian rupee strengthened to roughly ₹91.7 per US dollar, aided by a softer dollar and optimism around the India–EU trade deal.
- Foreign institutional investors (FIIs) continued to alternate between buying and selling; domestic investors provided support ahead of key events like the Union Budget and corporate earnings.
Top Gainers & Losers (Nifty 50)
| Top gainers | LTP (₹) | % Change |
|---|---|---|
| Adani Enterprises | 1,963 | +5.30 % |
| Axis Bank | 1,322 | +5.09 % |
| JSW Steel | 1,223.2 | +4.55 % |
| Adani Ports | 1,365 | +4.33 % |
| Grasim Industries | 2,860 | +3.66 % |
| Top losers | LTP (₹) | % Change |
|---|---|---|
| Mahindra & Mahindra | 3,392.9 | ‑4.25 % |
| Asian Paints | 2,628 | ‑2.80 % |
| Kotak Mahindra Bank | 411.9 | ‑2.58 % |
| Max Healthcare | 975.1 | ‑1.64 % |
| Maruti Suzuki | 15,237 | ‑1.50 % |
Other notable movers: NTPC, Tech Mahindra, Tata Steel and State Bank of India advanced up to ~5 %, while M&M, Asian Paints and Kotak Mahindra Bank led the laggards with declines.
What Moved the Market
- India–EU free‑trade agreement (FTA) – Reports of a “balanced and forward‑looking” FTA with the European Union spurred optimism about tariff reductions on metals, autos and industrial products. The expected removal of tariffs on 90 % of EU goods and favourable treatment for Indian exports triggered a rally in metal, capital goods and port stocks.
- Corporate earnings – Private‑sector lender Axis Bank reported a surprise rise in Q3 profits, boosting financial stocks. Metal producer results remained robust, aiding JSW Steel and Tata Steel. Conversely, Asian Paints reported a year‑on‑year profit decline despite revenue growth, pressuring the stock. Tata Consumers delivered strong numbers, which kept the stock supported.
- Adani group rebound – After a sharp sell‑off the previous week, Adani group stocks rebounded sharply amid renewed buying interest; Adani Enterprises and Adani Ports were among the biggest gainers.
- Global cues – U.S. indices (Dow, S&P 500 and Nasdaq) closed higher on Monday, helped by solid corporate earnings and easing inflation concerns. Asian markets were mixed, while European shares rose after the EU’s trade deal with India. Firm base‑metal prices added to the positive tone.
- Event‑driven volatility – Investors remained cautious ahead of the Union Budget scheduled for February 1. The Nifty F&O expiry added intra‑day volatility. Market participants continued to monitor U.S. tariff policy (comments from the U.S. Treasury Secretary hint at easing tariffs on India) and global geopolitical developments.
Global Market Highlights
| Region/Asset | Performance & Comments |
|---|---|
| U.S. stock indices | Dow Jones +0.64 %, S&P 500 +0.50 %, Nasdaq +0.43 % – strong corporate earnings buoyed sentiment. |
| European equities | Stoxx 600 opened higher; optimism around the EU’s trade pact with India and upcoming earnings supported gains. |
| Asian equities | Mixed; Japan’s Nikkei 225 gained ~0.6 % to 53,188.39; other Asian markets were cautious. |
| Commodities | Gold and silver prices fell from highs; base‑metal prices remained firm, supporting metal stocks. |
| Currency | Dollar index softened; rupee appreciated slightly. |
Stocks to Watch
- TVS Motor, Larsen & Toubro and Bharat Electronics – These companies are scheduled to announce results on 28 Jan 2026; earnings could influence sentiment in the auto, capital‑goods and defence sectors.
- Axis Bank and other private lenders – After strong Q3 results, watch for follow‑through buying and commentary on loan growth and asset quality.
- Adani group stocks – Given the sharp rebound, traders will monitor whether buying sustains or fades.
- Metal names (JSW Steel, Tata Steel, Hindalco) – Strength in commodity prices and tariff‑reduction hopes could keep momentum alive.
- Auto & consumer stocks – After recent underperformance (e.g., M&M, Maruti, Asian Paints), any bounce could signal bargain hunting or further weakness.
- Renewable & infrastructure plays – Waaree Renewable Technologies is acquiring a 55 % stake in Associated Power Structures; related stocks may react.
Corporate Updates
- Axis Bank reported a ~3 % year‑on‑year rise in Q3FY26 net profit (~₹6,489 crore), beating expectations. Net interest income rose 5 % while asset quality improved; major brokerages upgraded the stock.
- HCLTech announced the acquisition of Singapore‑based Finergic Solutions to strengthen wealth‑management services; the deal is expected to close by April 2026.
- Waaree Renewable Technologies will invest roughly ₹12.25 billion for a 55 % stake in Associated Power Structures, enhancing its power‑transmission capabilities.
- Pine Labs partnered with Wio Bank in the Middle East to develop a modern payment‑acquiring system, aiming for faster merchant onboarding and real‑time settlements.
- Asian Paints reported Q3 FY26 net profit of ₹1,074 crore (‑4.8 % YoY) despite revenue growth; margins improved but an exceptional loss weighed on earnings.
- Tata Consumer Products delivered strong results with net profit up 36 % YoY and margins expanding to 14.1 %.
Technical Levels & Outlook for the Next Trading Day (28 Jan 2026)
Nifty 50 – After a volatile session, the index closed above the psychological 25,000 mark and regained its 200‑day moving average. Momentum indicators remain in an oversold zone, suggesting potential for a short‑term pullback. Immediate resistance lies around 25,300–25,400; a sustained move above this zone could open the way toward 25,600. Key support levels are near 25,000 and 24,880; a break below these may invite renewed selling.
Nifty Bank – The index formed a long bullish candlestick, signalling buying interest. Support is seen near 58,800, with resistance around the 59,500 area and the 20‑day moving average. Volatility is expected to remain elevated due to the upcoming Budget and derivative positioning.
Market Tone for Tomorrow – A cautiously positive bias is likely. Traders will focus on finalisation of the India–EU trade agreement, corporate earnings and any pre‑Budget announcements. While index heavyweights have stabilised, persistent foreign selling and global uncertainty could cap upside. Overall, expect range‑bound trade within 25,000–25,400 on the Nifty with stock‑specific action dominating.
Conclusion
The Indian market staged a notable recovery on 27 January 2026, with the Sensex and Nifty closing higher despite cautious undertones. Strength in metals, banks and infrastructure stocks offset weakness in autos and consumer names. Global cues improved after the EU–India trade deal and strong U.S. earnings. Ahead of the Union Budget and fresh corporate results, the market is likely to remain event‑driven and volatile. Traders should focus on key support/resistance levels and monitor sector‑specific moves while maintaining a balanced outlook.
