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Informist, Tuesday, Jan. 27, 2026

By Eshitva Prakash and Anshul Choudhary

MUMBAI – The benchmark indices posted limited gains after India announced a free trade agreement with the European Union earlier in the day. Analysts said they are still waiting for details of the agreement as the government is yet to release the final document.

Trading was largely muted for most of the day with the Nifty 50 being range-bound in the early half of the session. The index rose after both parties announced the conclusion of the agreement in a joint press conference. The Nifty 50 ended at 25175.40 points, rising over 126 points or 0.5%. The index had risen to a high of 25246.65 intraday after the press conference. The BSE Sensex closed at 81857.48 points, up more than 300 points or 0.4%.

"Market may not react positively right now as the benefit will only come from FY27...there are other near term worries right now," Pankaj Pandey, head of research at ICICI Securities, said. "Still waiting for the final document (of India-EU FTA) for clarity."

Under the free trade agreement, New Delhi plans to slash duty on cars imported from countries that are a part of the European Union to 10% from 110% in a phased manner in 5–10 years. The cut in duty on cars would be applicable to 250,000 units per year, according to the European Commission. India will also fully abolish duty on auto components over 5–10 years. Shares of automobile companies were hit the hardest due to concerns of competition from European players after the cut in tariff.

India has agreed remove duty on aircraft, plastics, chemicals, iron and steel, and pharmaceuticals, the European Commission said in a statement. India will get duty-free market access to products from sectors such as textiles, footwear, base metals, marine products, and chemicals. 

Shares of automobile companies ended lower, with Tata Motors Passenger Vehicles, Maruti Suzuki India, and Mahindra & Mahindra shedding 1-4%. Mahindra & Mahindra fell the most among the Nifty 50 companies. The stock ended lower for the second straight session. The Nifty Auto index closed almost 1% lower. "Fall in the Nifty Auto index is mostly sentimental," said Pravin Bokade, head of research at IDBI Capital Markets & Securities. "Lower end cars won't have much impact (from the trade agreement), while cars beyond 25 lakhs rupees (INR 2.5 million) will see some impact," Bokade said.

Most metal companies ended higher, with Jindal Stainless, Hindustan Copper, and APL Apollo Tubes closing with gains of 4–8%. The Nifty Metal index rose the most among other sectoral indices. It closed over 3% higher.

Meanwhile, shares of textile companies received a boost from the India-EU trade deal announcement. Shares of KPR Mill closed over 6% higher. Alok Industries and Vardhman Textiles ended around 2% higher each. Footwear makers Relaxo Footwears and Mirza International rose over 2% and 5%, respectively. Shares of Phoenix International closed nearly 9% higher on the BSE.

Shares of several Adani group companies rose after falling sharply Friday. The shares fell on media reports that the US Securities and Exchange Commission had sought permission from a US court to issue legal summons to the conglomerate's Chairman Gautam Adani and his nephew and group executive Sagar Adani, in an alleged fraud and $265-million bribery case. Later that day, Adani group companies said there were no bribery allegations against them.

Shares of Adani Enterprises rose over 5%. It was the top performing stock in the Nifty 50 index. The stock had closed around 11% lower on Friday. Adani Ports and Special Economic Zone ended over 4% higher. Adani Energy Solutions, which ended 12% lower Thursday, ended over 4% higher.

Shares of Asian Paints ended nearly 3% lower after the company reported a consolidated net profit of INR 10.60 billion for the December quarter, down nearly 5% on year. Revenue for the quarter was up almost 4% on year at INR 88.67 billion. The company's net profit and revenue were below analysts' estimates. Shares of Tata Consumer Products closed almost 3% higher after its adjusted Oct-Dec bottom line, excluding one-time cost, was in line with expectations.

Among Nifty 200 stocks, JSW Energy ended nearly 8% lower after it reported poor earnings for the December quarter. The company's net profit for the quarter was INR 4.89 billion, but included a deferred tax write back of INR 7.51 billion.

Excluding the deferred tax and other exceptional costs, the company would have reported a loss of INR 2.60 billion. Elara Securities (India) Pvt. Ltd. has cut its target price for the stock by 10%, factoring in softer merchant prices and delays in project execution.

Shares of Onesource Speciality Pharma were the worst hit in the Nifty 500 index. They closed nearly 20% lower after the company's consolidated net loss for the December quarter increased to INR 886.99 million, from a net loss of INR 688.49 million a year ago. Home First Finance Co. India ended 12.5% higher, rising for the second straight session after its quarterly results. On Thursday, the company had reported year-on-year rise of 44% in its net profit to INR 1.40 billion for the December quarter.

Broader market indices also closed higher, mimicking the rise in benchmark peers. All midcap indices closed 0.5-0.6% higher. The Nifty Smallcap 50 index closed with 0.7% gains.

* Of the Nifty 50 stocks, 34 rose and 16 fell

* Of the Sensex stocks, 17 rose and 13 fell

* On the NSE, 1,631 stocks rose, 1,562 fell, and 119 were unchanged

* On the BSE, 1,803 stocks rose, 2,501 fell, and 160 were unchanged

* Nifty Metal: up 3.1%; Nifty PSU Bank: up 1.8%; Nifty Media: down 1.4%

BSE                                                 NSE

Sensex: 81857.48, up 319.78 points or 0.4%         Nifty 50: 25175.40, up 126.75 points or 0.5%

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Ashish Shirke 

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