Markets rise on January 27 as banks and metals lead; India–EU trade deal optimism supports sentiment

Indian equity benchmarks ended higher on Tuesday, January 27, 2026, extending gains after a choppy session as investors bought into banking and metal counters. Traders also pointed to supportive global market cues and rising optimism around the India–EU free trade agreement as key factors helping sentiment.

According to the day’s closing levels reported by market trackers, the BSE Sensex rose by a little over 300 points to finish above 81,800, while the Nifty 50 closed above 25,150. The session saw wide intraday swings, but buying interest strengthened later in the day as risk appetite improved across sectors.

Why the India–EU deal matters for markets

Investors see the India–EU free trade pact as a potential medium-term tailwind for export-oriented segments and for companies that benefit from smoother cross-border trade in goods and components. While the agreement still requires legal vetting and ratification steps, traders often reprice expectations early when a large market-access event becomes more credible.

Market participants also watched currency and global-rate signals closely, as foreign flows and the rupee’s direction have remained influential for Indian equities in recent weeks. With banking shares in focus, any policy clarity on credit growth, deposit mobilisation and capital expenditure trends could further shape near-term direction.

What to watch next

• Follow-through buying in banks/metals versus profit-taking after the rebound
• Clarity on the trade pact timeline and which sectors see early benefits
• Global cues: commodity prices, risk sentiment and rates-driven volatility
• Foreign investor flow trends and rupee movement