The Indian stock market ended with decent gains on Tuesday, January 27, after Prime Minister Narendra Modi announced a free trade agreement (FTA) between India and the European Union (EU).

The Sensex ended at 81,857.48, rising 320 points, or 0.39%, while the Nifty 50 closed at 25,175.40, up 127 points, or 0.51%.

Gains were broad-based, with the mid- and small-cap segments also ending in the positive territory. The Nifty Midcap 150 index rose by 0.53%, while the Nifty Smallcap 250 index climbed by 0.20%.

The overall market capitalisation of BSE-listed firms rose to over ₹454.6 lakh crore from ₹451.6 lakh crore in the previous session, making investors richer by about ₹3 lakh crore in a single session.

10 key highlights from the Indian stock market today

1. What drove the Indian stock market higher?

The India–EU FTA improved market sentiment. However, persistent FII selling, concerns over geopolitical risks, and mixed Q3 earnings capped market gains. Investors are also awaiting the mega policy event—the Union Budget 2026—while cautiously nibbling select stocks.

“The domestic market exhibited a volatile trading day and ended the session positively on the monthly expiry day, influenced by mixed cues and renewed tariff concerns offset by optimism surrounding the conclusion of the India–EU trade agreement,” Vinod Nair, Head of Research, Geojit Investments, noted.

“Investors continued to assess ongoing corporate earnings, which have been mixed so far and offered limited scope for near-term upgrades. In the near term, investors are awaiting the US Fed’s upcoming interest rate decision and the Union Budget for future direction,” Nair said.

(This is a developing story. Please check back for fresh updates.)

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