Last Updated on January 28, 2026 10:28 pm by INDIAN AWAAZ
AMN/ BIZ DESK
Indian equity markets continued their upward momentum on Wednesday, extending gains for a second consecutive session as investors digested the positive fallout of the landmark India–European Union Free Trade Agreement and positioned themselves ahead of the Union Budget. The benchmark indices posted solid gains, supported by broad-based buying across key sectors.
The BSE Sensex closed 487.20 points higher, up 0.60% at 82,344.68, while the Nifty 50 advanced 167.35 points, or 0.66%, to settle at 25,342.75. The benchmarks have now gained nearly 1% over the last two sessions, reflecting improving risk appetite after recent consolidation.
Energy and Metals Lead
Energy stocks outperformed the broader market, surging 4.2%, driven by firm global crude oil prices and expectations of improved margins. Metal stocks followed closely, rising 2.3% on the back of higher base metal prices and optimism that the India–EU trade deal will boost export demand for steel and non-ferrous metals.
Defence, PSU and Infrastructure Stocks Shine
The defence sector stole the spotlight with a sharp 7% rally, buoyed by strong earnings, robust order inflows and sustained government focus on indigenous manufacturing. Public sector enterprises (PSEs) climbed 4.6%, while infrastructure stocks gained 1.1%, supported by hopes of continued capital expenditure in the upcoming Budget.
Broader Markets Outperform
The rally was more pronounced in the broader market, with mid-cap stocks rising 1.7% and small-cap shares jumping 2.3%, indicating improving investor confidence beyond frontline indices.
Stock-Specific Action
Among individual stocks, Bharat Electronics Ltd (BEL) soared 8.9% to a record high on strong profit growth. Mahindra Logistics surged 15%, while Motilal Oswal Financial Services gained 7.5%, both reacting positively to upbeat quarterly earnings. In contrast, Asian Paints slipped 4.2% after reporting subdued volume growth in the December quarter.
Currency, Bonds and Global Cues
The rupee weakened marginally by 0.07% to 91.7825 per dollar, pressured by month-end dollar demand despite a softer greenback globally. In the debt market, the 10-year government bond yield eased 2 basis points to 6.6997%, while overnight index swap rates also declined, signaling stable interest rate expectations.
Outlook
Market participants are now keenly watching the U.S. Federal Reserve’s policy decision, widely expected to keep rates unchanged. Domestically, the focus remains on the Union Budget, which is seen as a low-impact event, with investors expecting targeted sectoral measures rather than broad-based stimulus. While short-covering and the India–EU FTA continue to support sentiment, a weak rupee, persistent FPI selling and geopolitical risks could cap further upside in the near term.