Pre-Market Report: Nifty Steady After India-EU Deal, VIX at 7-Month High

On Tuesday, 27 January 2026, Indian market indexes closed higher due to strength in a few key industries and confidence surrounding the India-EU Free Trade Agreement. The Sensex gained around 319.77 points, while the Nifty 50 settled at 25,175.40 mark after a volatile session.

Sentiment improved after reports confirmed progress on what officials described as the “mother of all deals” between India and the European Union. The Free Trade Agreement between India & the EU is expected to eliminate or reduce tariffs on 97% EU goods, lifting investor confidence at a time when global trade uncertainty remains elevated.

Yesterday’s Market Recap

The market's breadth increased in the afternoon following a quiet start, with a number of well-known companies in the banking, metal, and export-related industries outperforming.

Sectoral Performance

Gains came largely from metal and banking stocks, with metals climbing nearly 3% during the session. Banks also saw consistent buying interest, which helped the main indices bounce back from earlier fluctuations.

Auto, FMCG, and media stocks didn't fare as well. Auto stocks took a hit as there is some concern that lower car import tariffs from the trade deal might bring in more competition for local manufacturers, which has not sat well with investors.

Stocks in Focus

Axis Bank jumped more than 4.59% after its quarterly results came in ahead of expectations, which lifted the mood around some private sector banks.

Adani Enterprises bounced back strongly too, climbing up to 5.11%, after a rough patch for the group's stocks recently.

Technical Levels

Despite the recent rebound, technical indicators point to a mixed and conservative outlook for the Nifty 50. The Money Flow Index (MFI) is at 22.6, which is deemed oversold, and the 14-day RSI is at 34.3.

The index is currently trading slightly over the 200-day SMA, which is located close to 25,154, but below its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, and 150-day SMAs.

Institutional Activity

On January 27, foreign institutional investors extended their cautious approach by selling stocks valued at around ₹3,068.49, continuing to be net sellers in the cash market. Domestic institutional investors, however, provided support by buying equities of nearly ₹8,999.71 crore.

Gift Nifty

GIFT Nifty was hovering around 25,250 level, suggesting a positive start. Traders will probably wait for stronger global signals before making moves.

What to Expect in Today's Market?

Markets could stay selective as investors balance the positive news around the India-EU trade deal with heightened volatility. Although domestic buying has recently helped keep the indexes stable, there may still be some significant day-to-day fluctuations, especially with elevated India VIX hovering around 14.45.

Due to sector-level implications of the trade deal and earnings responses, trading is expected to remain stock-specific. Industries facing competitive pressure might stay under watch, while export-oriented stocks could continue drawing interest.

Sources:

BSE

NSE

Hindustan Times

Moneycontrol

Trendlyne

Google Finance