Pre-Market Report: Nifty Above 25,300 Ahead of Budget, Trade Cues

On Wednesday, 28 January 2026, Indian equity indexes closed higher due to excitement over the recent India-EU deal. The NSE Nifty 50 climbed 0.66% to 25,342.75, safely above the psychologically significant 25,300 barrier, while the BSE Sensex gained 0.60% to close at 82,344.68.

The EU deal, signed on 27 January 2026, eliminates tariffs on more than 90% of bilateral goods trade, saving EU exporters €4 billion annually while opening India's vast market to European machinery, chemicals and pharmaceuticals. Markets rotated into metals (+2.34%), energy (+4.18%) and defence stocks, offsetting FMCG profit-taking.

Yesterday's Market Recap

Broad-based buying emerged post-noon after early consolidation. Metals led with Hindalco (+4.28%), while energy heavyweight ONGC surged 8.18% to ₹268.23 on export demand optimism.

EU Trade Deal & Upcoming Union Budget

The "mother of all deals" eliminates tariffs on 96.6% of EU goods exports to India immediately, covering chemicals, pharmaceuticals, and machinery. 90% of items are eligible for duty-free entry for Indian exporters.

At the same time, excitement for the Union Budget 2026 is growing in anticipation of Finance Minister Nirmala Sitharaman's landmark Sunday presentation on February 1. Expectations centre on a ₹1 lakh standard deduction hike, LTCG exemption expansion to ₹2 lakh, and boosted defence/manufacturing capex complementing EU export gains.

Stocks in Focus

• ONGC (+8.18%) led energy rally on EU export prospects

• BEL climbed 9.21% to ₹454.25 amid defence budget anticipation

• Hindalco (+4.28%) benefited from metals tariff relief

Technical Levels

The Nifty 50 closed near 25342.75, up 0.66%, but technical indicators remain mixed. The index is trading with 12 bearish and four bullish moving averages, suggesting broader trend strength is still limited.

The RSI stands at 40.4, while the MACD stays below its signal and zero lines, indicating lingering bearish momentum despite the recent bounce.

The pivot level is placed around 25,300. Immediate resistance is seen at 25,414, followed by 25,485 and 25,598. On the downside, support is located near 25,229, with further levels at 25,116 and 25,045.

Institutional Activity

FIIs bought ₹480.26 Cr on 28 January amid the continuous selling throughout this month. Domestic institutions supported with ₹3,360.59 crore worth of equities.

Gift Nifty & Global Indices

Gift Nifty futures is hovering around 25,393 at the time of writing, down 0.13%. Asian stock markets showed modest gains on Wednesday, with the Hang Seng up by 2.58% and the Nikkei up by 0.047%. US markets, on the other hand, showed mixed performance, with the S&P 500 down by 0.043% and the Dow Jones up by 0.034%.

What to Expect Today?

Trading likely stays stock-specific as investors balance EU deal tailwinds favouring exporters (metals, pharma, IT services) against tariff competition risks for autos and volatility with India VIX at 13.52.

Budget-related positioning is picking up ahead of the Economic Survey due on Friday, prompting investor focus on defence, infrastructure and consumption-related stocks.

Sources:

ET

Moneycontrol

Trendlyne

Reuters

CNBC