Indian equity benchmarks closed in an upward trajectory on Wednesday, January 28, building on gains from the previous session as investors responded positively
to developments surrounding the India–European Union free trade agreement and encouraging global market trends. Sentiment remained upbeat through the afternoon, supported by easing volatility and strong buying interest in select heavyweight stocks. At the close, the Sensex settled at 82,344.68, up 487.20 points or 0.60 per cent, reflecting steady buying across key sectors. Meanwhile, the Nifty 50 ended at 25,342.75, advancing 167.35 points or 0.66 per cent from its opening levels. Overall sentiment remained positive, supported by broad-based participation and sustained investor confidence, helping the indices finish near the day’s highs. Oil & Natural Gas Corporation, Coal India and Axis Bank featured among the top performers on the Nifty50, advancing as much as 6 per cent during the session. On the other hand, Asian Paints and Tata Consumer Products were among the notable laggards, slipping up to 6 per cent amid stock-specific concerns. India-EU Trade Pact Lifts Investor Confidence A major catalyst for Wednesday’s rally was optimism surrounding the India-EU free trade agreement, which has been described by policymakers as the “mother of all deals”. The agreement is expected to significantly deepen economic ties by creating access to a combined market of nearly two billion people. Under the pact, tariffs will be lowered on 99 per cent of Indian exports to the EU, while duties on over 97 per cent of European exports to India will be reduced. The scale of the deal, covering economies that together account for close to a quarter of global GDP, has strengthened expectations of long-term trade and investment benefits. Supportive Global Cues Add Momentum Global market trends also provided a tailwind to domestic equities. Key Asian indices such as South Korea’s Kospi, China’s Shanghai Composite and Hong Kong’s Hang Seng were trading higher during the session. Meanwhile, US markets ended mostly in the green overnight, reinforcing risk appetite across regions. Volatility Cools, Technical Levels In Focus Another supportive factor was the decline in India VIX, the market’s volatility gauge, which slipped more than 2 per cent to 14.13. A softer VIX typically signals reduced uncertainty and greater investor comfort with prevailing market conditions. From a technical standpoint, Anand James, Chief Market Strategist at Geojit Investments Limited, noted in a Moneycontrol report that a key breakout has already occurred. “A direct rise above 25,180 on the Nifty has signalled a reversal with an upside target of 25,800, though intermediate resistance is seen near 25,580.” He cautioned that failure to move past 25,400 warrants attention, adding that “a slip below 25,080 would be required to change the current outlook,” while also observing that a sharp decline appears unlikely during the session.
