Market Analysis: Wednesday, Wednesday, January 28, 2026

Indian equity benchmarks extended their winning streak for a second consecutive session on Wednesday, Wednesday, January 28, 2026, as investor sentiment was bolstered by a combination of high-impact domestic news and record-breaking global cues. The headlines were dominated by the finalization of the India-EU Free Trade Agreement—hailed by analysts as the "Mother of All Deals"—and the historic ascent of the S&P 500 above the 7,000-point mark.

Executive Summary: Indices at a Glance

The domestic markets demonstrated resilient bullish momentum throughout the trading day. The Nifty 50 reclaimed the psychologically critical 25,300 level, while the Sensex surged nearly 500 points. The rally was underpinned by massive support from Domestic Institutional Investors (DIIs) and a welcome return to net buying by Foreign Institutional Investors (FIIs).

Market Mechanics: Intraday Analysis

The Nifty 50 opened the session at 25,258.85, immediately indicating a positive bias. Throughout the day, the index scaled an intraday high of 25,372.10, showcasing strong buying interest on every minor dip. The closing at 25,342.75 suggests that bulls managed to maintain control despite some late-session profit booking in defensive pockets. This movement represents a 1% cumulative gain over the last two trading sessions, signaling a robust recovery phase.

Top Movers Analysis: Winners and Losers

The Gainers

1. Bharat Electronics Ltd (BEL) [+8.91%]: The standout performer of the day. BEL's stock price surged following stellar Q3 results, which featured a 20.4% YoY jump in net profit to ₹1,579 crore. The market is pricing in a massive expansion of its order book driven by government defense modernization.
2. Oil & Natural Gas Corpn Ltd (ONGC) [+8.32%]: A dual catalyst drove ONGC higher: a strategic deepwater exploration agreement with Reliance Industries and a spike in Brent crude prices to $67.5 per barrel following severe US weather disruptions.
3. Coal India Ltd [+5.00%]: Benefited from the broader rally in the metal and mining space, supported by strong production data and firming global realization rates.
4. Eternal Ltd [+4.90%]: The stock witnessed aggressive buying as volume growth projections were revised upward.
5. Hindalco Industries Ltd [+3.78%]: Followed the global trend in commodity prices, particularly aluminum and copper, as China's stabilization efforts improved the metal demand outlook.

The Losers

1. Tata Consumer Products Ltd [-4.68%]: Faced the brunt of sectoral rotation as investors exited defensive FMCG positions to fund entries into cyclical sectors.
2. Asian Paints Ltd [-4.23%]: Reported disappointing Q3 results characterized by weak volume growth and persistent margin pressure, leading to a sharp sell-off.
3. Maruti Suzuki India Ltd [-2.41%]: Despite reporting a 7.6% rise in net profit to ₹3,794 crore, the stock fell as the market focused on increasing competitive intensity and margin headwinds.
4. Max Healthcare [-1.73%]: Experienced profit booking after a sustained period of outperformance.
5. Sun Pharmaceutical Industries Ltd [-1.73%]: Dragged the Pharma index lower as regulatory concerns and mixed global earnings dampened sentiment.

Sectoral Deep Dive

The sectoral performance on Wednesday, Wednesday, January 28, 2026, was a classic display of "Risk-On" sentiment.

• Metal (+2.34%): The clear leader, fueled by the India-EU trade deal which is expected to scrap tariffs on engineering and metal exports.
• Realty (+1.57%): Expectations of policy support in the upcoming Union Budget kept the real estate sector buoyant.
• Auto (+0.69%): While Maruti lagged, other components of the auto index saw buying interest on hopes of rural recovery.
• FMCG (-0.71%) & Pharma (-0.22%): These defensive sectors underperformed as the broader market opted for growth-oriented cyclical stocks.
• IT (+0.41%): Consolidated despite a 4-year low in the US Dollar Index, as investors await clearer guidance on US tech spending.

Institutional Activity and Market Breadth

The institutional landscape showed a significant shift. For the first time in several sessions, FIIs turned net buyers, injecting ₹480.26 crore. More impressively, DIIs continued their massive support role with a net purchase of ₹3,360.59 crore. This overwhelming domestic liquidity has become a formidable floor for the Indian markets.

Market breadth was decisively positive:

• NSE: 32 stocks advanced against 17 declines.
• BSE: 2,844 stocks advanced while 1,226 declined (Ratio of ~2.3:1).

Global Cues and Macroeconomic Impact

Indian markets were significantly influenced by international milestones. The S&P 500 crossing 7,000 points for the first time in history (closing at 7,001.05) provided a powerful psychological tailwind. Concurrently, the US Dollar Index plummeted to a 4-year low of 95.91, which traditionally triggers capital inflows into emerging markets like India.

In Asia, sentiment was mixed. While South Korea's KOSPI jumped 1.6%, Japan's Nikkei fell 0.7%. Interestingly, a massive 8% plunge in the Jakarta Composite (following an MSCI freeze) failed to trigger a contagion effect in India, highlighting the relative stability of the Indian domestic economy.

Key News Impact Analysis

• India-EU Trade Deal: This landmark agreement will scrap tariffs on over 90% of products. This is a multi-year catalyst for Indian exporters in the textile, engineering, and chemical sectors.
• L&T Riyadh Order: Winning a ₹10,000 crore Metro extension order reinforces L&T's status as a global infrastructure giant, though the stock saw some profit-taking alongside the capital goods segment.
• Energy Strategic Alliance: The ONGC-Reliance agreement for deepwater exploration is a major step toward India’s energy security, boosting sentiment for the entire oil & gas value chain.

Technical Outlook

The Nifty 50’s ability to close above 25,300 is technically significant. This level, which previously acted as resistance, has now likely turned into a pivot point. The immediate resistance is now seen at the 25,450–25,500 zone. On the downside, 25,175 and 25,000 remain the primary support levels. The RSI (Relative Strength Index) is trending upward, suggesting there is still room for further gains before reaching overbought territory.

Strategic Implications for Investors

As we approach the Union Budget 2026, the market is exhibiting "pre-budget" positioning. The rotation out of FMCG and Pharma into Metals and Banking suggests that big money is betting on an infrastructure and growth-heavy budget. Investors should maintain a diversified portfolio but remain wary of stocks with high valuations and disappointing Q3 earnings, such as those seen in the paints and consumer sectors. The return of FII buying, coupled with the weak US dollar, creates a favorable window for quality large-cap accumulation.