Stocks Surge on Bank, Metal Gains; India-EU FTA Boost

The Editorial Team of Behind The Headlines reports that Indian stock markets rebounded strongly on Tuesday, January 27, 2026, after a previous day’s closure for Republic Day. Both the Sensex and Nifty indices closed higher, driven by significant buying in metal and banking stocks. Positive sentiment surrounding the newly announced India-European Union Free Trade Agreement (FTA) further fueled the market’s upward trajectory. The Sensex climbed 319.78 points to settle at 81,857.48, while the Nifty surged 126.75 points to close at 25,175.40.

Axis Bank saw a notable jump of over 4% following the release of its December quarter net profit, which showed a 4% increase compared to the previous year. The India-EU FTA, hailed as a landmark agreement, aims to reduce trade barriers and boost economic cooperation between the two regions. Prime Minister Modi emphasized its significance in a global context marked by trade disruptions. However, Foreign Institutional Investors continued to sell off equities, while Domestic Institutional Investors made purchases, indicating a mixed outlook on the Indian market.

This market surge and the India-EU FTA are expected to have a positive impact on various sectors, potentially leading to increased investment and economic growth. However, analysts caution that sustained foreign selling and moderate corporate earnings could limit further gains. The long-term effects of the FTA will depend on its implementation and how it navigates the complexities of global trade. Readers can find more analysis on similar market trends at Behind The Headlines’ economy section. For deeper insights on international trade agreements, explore our world affairs coverage.