Sensex Jumps 487 Points, Nifty Tops 25,300 on Strong Earnings

Market Rallies on Multiple Positive Triggers

Indian equity markets closed with significant gains on Tuesday, January 28, 2026, extending their upward momentum. The BSE Sensex jumped 487.20 points, or 0.60%, to close at 82,344.68, while the NSE Nifty 50 advanced 167.35 points, or 0.66%, to settle at 25,342.75. The rally was broad-based, fueled by a combination of robust quarterly earnings from key companies, positive global cues, and a landmark free trade agreement finalized between India and the European Union.

Sectoral Leaders and Stock-Specific Action

The day's gains were led by strong performances in the metal, oil & gas, and defence sectors. Shares of ONGC and Oil India surged by up to 10% to reach new record highs, tracking a rise in global oil prices. The metals index also saw significant buying interest, with JSW Steel climbing 5% after reporting a remarkable 198% surge in its quarterly net profit. Similarly, Hindustan Copper shares rallied 19% over two days after the company was named the preferred bidder for a copper block in Madhya Pradesh.

Defence stocks were also in focus, with the Nifty defence index soaring 5%. Shares of companies like BEL and BEML rose up to 12%, reflecting positive investor sentiment in the sector. In the banking space, Axis Bank was a standout performer, with its shares climbing 5% to a record high after reporting a surprise increase in quarterly profit, driven by healthy loan growth. This helped the Bank Nifty reclaim the crucial 59,500 level.

Impact of Q3 Corporate Earnings

The ongoing third-quarter earnings season has been a significant driver of market sentiment. While Axis Bank and JSW Steel provided strong positive triggers, results from other major firms were mixed. Maruti Suzuki reported a 4% rise in net profit to Rs 3,794 crore on a 29% increase in revenue, but its stock saw some profit booking. Larsen & Toubro (L&T) reported a 4% decline in net profit to Rs 3,215 crore, although its revenue grew by 10%. On the other hand, Vodafone Idea's shares rose after the company narrowed its net loss, and Mahindra Logistics gained 15% following a turnaround to profitability.

The India-EU Trade Deal Boost

A major catalyst for the market was the announcement of a finalized India-EU free trade agreement (FTA). Under the agreement, India will eliminate or reduce tariffs on 96.6% of traded goods, while the EU will reciprocate by reducing tariffs on 99.5% of goods over a seven-year period. This development was widely cheered by the market as it opens up significant opportunities for Indian exporters and is expected to boost economic competitiveness. The deal also raised hopes for a potential reduction in US tariffs on Indian goods, further improving sentiment.

Market Performance Summary

Global Cues and Investor Outlook

Positive signals from global markets also supported the domestic rally. Wall Street futures indicated a strong opening, with the S&P 500 crossing the 7,000 mark for the first time, driven by a tech-powered rally ahead of major earnings reports. Investor sentiment was also bolstered by renewed foreign fund inflows and expectations of potential interest rate cuts by the US Federal Reserve later in the year.

Technical View and Future Outlook

From a technical standpoint, the Nifty 50 has shown strength by extending its rally. However, analysts suggest that a decisive close above the 25,450 mark is necessary to sustain the bullish bias for further upward movement. The cooling off of the volatility index (VIX) has provided some comfort to the bulls. The market's direction in the near term will likely be influenced by the upcoming Union Budget 2026 and the remaining corporate earnings for the third quarter.

Conclusion

The Indian stock market demonstrated strong resilience and optimism, driven by solid domestic fundamentals and favorable international developments. The combination of strong corporate earnings, a strategic trade agreement with the EU, and supportive global markets has created a positive environment for investors. Market participants will now closely watch for policy announcements in the forthcoming budget to gauge the future trajectory of the economy and the markets.