Sensex jumps 646 points in early trade on optimism over India-EU FTA

Market Performance - Equity benchmark indices Sensex and Nifty surged in early trade on January 28, 2026, with Sensex jumping 646.49 points to 82,503.97 and Nifty rising 196.7 points to 25,372.10, driven by optimism over the India-EU free trade agreement [1] - Major gainers included Axis Bank, Reliance Industries, NTPC, Bharat Electronics, ICICI Bank, and Bajaj Finance [1] Company Performance - Asian Paints experienced a nearly 6% drop after reporting a 4.83% decline in consolidated net profit to ₹1,073.92 crore for the December quarter of FY26, attributed to exceptional items related to the new labour code and impairment losses in a subsidiary [2] - Other laggards included Maruti, HCL Tech, Kotak Mahindra Bank, and State Bank of India [2] Trade Agreement Impact - India and the European Union finalized a landmark free trade agreement on January 27, 2026, aimed at creating a market of two billion people and enhancing trade and defense cooperation [3] - The agreement will reduce tariffs on 99% of Indian exports to the EU and on over 97% of EU exports to India, accounting for nearly a quarter of global GDP [4] Investment Trends - Foreign institutional investors sold equities worth ₹3,068.49 crore, while domestic institutional investors purchased stocks worth ₹8,999.71 crore, indicating a shift in market dynamics post-trade deal [4] - The Chief Investment Strategist at Geojit Investments noted that the India-EU trade deal is a significant long-term positive, with investors now focusing on the upcoming Union Budget [6]