Indian stock markets cheered the landmark India-EU Free Trade Agreement (FTA) today, with Sensex rises by 487 points in its second straight session of gains. On Wednesday, January 28, 2026, the BSE Sensex settled at 82,344.68, while the NSE Nifty closed at 25,342.75, up 167 points. This rally comes hot on the heels of the FTA signing at the 16th India-EU Summit, sparking optimism for trade and growth.
India-EU FTA: The Big Market Catalyst
After 18 years of talks, India and the 27-nation EU bloc sealed the deal on Tuesday. Union Minister Piyush Goyal called it a "strong and independent" pact between the world's fourth-largest economy (India) and the second-largest (EU). Together, they represent 25% of global GDP and one-third of world trade. Experts say this India-EU FTA could slash tariffs, boost exports in sectors like autos, pharma, and IT, and attract fresh investments—making it a game-changer amid global uncertainties.
"Why now? With US markets volatile and geopolitical tensions rising, this FTA positions India as a reliable trade hub," notes market analyst Rajesh Mishra. Investors are betting on easier EU access, driving today's bullish sentiment.
Mixed Global Cues, But Local Strength Shines
Asian markets showed a split picture: Korea's KOSPI up 1.05% at 5,138, Hong Kong's Hang Seng surging 2.21% to 27,725, and China's Shanghai Composite gaining 0.49% at 4,160. Japan's Nikkei dipped 0.58% to 53,024. In the US, January 27 saw Dow Jones fall 0.83% to 49,003, while Nasdaq rose 0.91% and S&P 500 gained 0.41%.
Domestically, Tuesday's session set the tone—Sensex up 319 points to 81,857, Nifty adding 126 to 25,175.
FII Selling Offset by DII Buying Spree
Foreign Institutional Investors (FIIs) sold ā¹3,068 crore worth of shares on January 27, continuing December 2025's net outflow of ā¹34,350 crore. But Domestic Institutional Investors (DIIs) countered strongly, netting ā¹8,999 crore that day and ā¹79,620 crore for December. This DII support has kept Nifty today resilient.
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Key Gainers: Banking and IT stocks led, with HDFC Bank and Infosys shining.
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Practical Tip: Long-term investors should eye export-focused firms benefiting from India-EU FTA.
In conclusion, as Sensex rises amid FTA euphoria, markets signal confidence in India's global push. Watch for Q4 earnings and US Fed cues next. Stay tuned for Nifty today updates.
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