BSE India Defence

Sensex dropped 400 points, Nifty fell below 25,250 due to profit booking., FII selling and auto stock sell-off contributed to market trimming gains, Tariffs on EU cars to be cut, benefiting European automakers

* Sensex dropped 400 points, Nifty fell below 25,250 due to profit booking.
* FII selling and auto stock sell-off contributed to market trimming gains
* Tariffs on EU cars to be cut, benefiting European automakers

Sensex and Nifty trimmed gains on January 28 due to profit booking, continued FII selling, and an ongoing auto sector sell-off. Auto stocks fell as tariffs on EU cars will be cut, benefiting European automakers. Investors now await the Union Budget.

shorts/business/sensex-falls-350-pts-from-day-s-high-nifty-near-25-250-three-reasons-behind-markets-trimming-gains

* Sensex dropped 400 points, Nifty fell below 25,250 due to profit booking.
* FII selling and auto stock sell-off contributed to market trimming gains
* Tariffs on EU cars to be cut, benefiting European automakers

Equity benchmarks Sensex and Nifty pared their gains from day's high on January 28 amid profit booking. Sensex fell 350 points from day's high while Nifty slid below the 25,250-mark.

At 10:29 am, the <a href="https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-gift-nifty-indicates-a-firm-start-us-asian-markets-mixed-2-liveblog-13793449.html">Sensex</a> was up 308.56 points or 0.38 percent at 82,166.04, and the Nifty was up 86.75 points or 0.34 percent at 25,262.15. About 2347 shares advanced, 1118 shares declined, and 167 shares unchanged.

Three reasons behind markets trimming gains
<ol>
	<li>Profit booking</li>
</ol>
Profit booking was seen on January 28 as markets extended their gains with Sensex gaining over 600 points from previous close and Nifty gaining nearly 200 points.

Among the top losers on Nifty are Tata Consumer Products, Asian Paints, Eicher Motors, Maruti Suzuki, Bajaj Auto, Hindustan Unilever.

Shares of Asian Paints fell 5.4%, after losing 3% in the previous session following a surprise drop in December-quarter profit.

2. FII selling

FII selling continued on January 27 as well. "The highly volatile market session yesterday reflected the tug of war between the FIIs and DIIs. The FIIs continued their selling spree with cash market selling of Rs 3,068 crore. DIIs, flush with funds, aggressively bought beaten down fundamentally strong stocks for a massive Rs 8,999 crore. A significant feature of the ongoing market construct is the huge short position created by the FIIs in index futures. This short position is being supported by sustained selling in the cash market.

"The logic behind the FII strategy is the relatively high valuation in India , the modest earnings growth and the continuing weakness in the rupee. DII buying is supported by fund flows and expectations of earnings recovery. Any news or event that triggers short covering can lead to a rally in the market. After the India-EU trade deal, which is a big long-term positive, investors are now focused on the Union Budget to be presented on Feb first," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

3. Auto sell-off continues

Sell-off in auto stocks continued on January 28 as well as tariffs on cars from EU will be cut steeply over five years, benefiting European automakers such as Volkswagen, Renault, Mercedes-Benz and BMW.

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Sensex falls 350 pts from day's high, Nifty near 25,250: Three reasons behind markets trimming gains

Equity benchmarks Sensex and Nifty pared their gains from day's high on January 28 amid profit booking. Sensex fell 350 points from day's high while Nifty slid below the 25,250-mark.

At 10:29 am, the Sensex was up 308.56 points or 0.38 percent at 82,166.04, and the Nifty was up 86.75 points or 0.34 percent at 25,262.15. About 2347 shares advanced, 1118 shares declined, and 167 shares unchanged.

Three reasons behind markets trimming gains

	Profit booking

Profit booking was seen on January 28 as markets extended their gains with Sensex gaining over 600 points from previous close and Nifty gaining nearly 200 points.

Among the top losers on Nifty are Tata Consumer Products, Asian Paints, Eicher Motors, Maruti Suzuki, Bajaj Auto, Hindustan Unilever.

Shares of Asian Paints fell 5.4%, after losing 3% in the previous session following a surprise drop in December-quarter profit.

2. FII selling

FII selling continued on January 27 as well. &quot;The highly volatile market session yesterday reflected the tug of war between the FIIs and DIIs. The FIIs continued their selling spree with cash market selling of Rs 3,068 crore. DIIs, flush with funds, aggressively bought beaten down fundamentally strong stocks for a massive Rs 8,999 crore. A significant feature of the ongoing market construct is the huge short position created by the FIIs in index futures. This short position is being supported by sustained selling in the cash market.

&quot;The logic behind the FII strategy is the relatively high valuation in India , the modest earnings growth and the continuing weakness in the rupee. DII buying is supported by fund flows and expectations of earnings recovery. Any news or event that triggers short covering can lead to a rally in the market. After the India-EU trade deal, which is a big long-term positive, investors are now focused on the Union Budget to be presented on Feb first,&quot; said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

3. Auto sell-off continues

Sell-off in auto stocks continued on January 28 as well as tariffs on cars from EU will be cut steeply over five years, benefiting European automakers such as Volkswagen, Renault, Mercedes-Benz and BMW.

&amp;nbsp;

The equity benchmark indices Sensex and Nifty climbed in early trade on Wednesday, extending the previous session’s gains, tracking optimism over the India-European Union free trade agreement and firm global cues.

The Sensex jumped 646.49 points to 82,503.97 in early trade, while the broader Nifty surged 196.70 points to 25,372.10.

<a href="https://www.moneycontrol.com/india/stockpricequote/oil-drillingexploration/oilnaturalgascorporation/ONG">Oil &amp; Natural Gas Corporation</a>, Coal India and Axis Bank were among the top gainers in the Nifty50 pack, rising up to 6 percent, while <a href="https://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31">Asian Paints</a> and Tata Consumer Products were among the major laggards, declining up to 6 percent.
<h3>Key factors behind market rise</h3>
1) India-EU trade deal: Investor sentiment was boosted after India and the European Union sealed a free trade agreement, described as the “mother of all deals”. The agreement aims to create a market of nearly two billion people. Under the pact, tariffs on 99 percent of Indian exports to the EU will be reduced, while duties on over 97 percent of EU exports to India will be cut. The deal is expected to account for almost a quarter of global GDP.
<h3><a href="https://www.moneycontrol.com/news/business/india-to-get-tariff-concessions-on-over-99-of-exports-to-eu-under-trade-deal-13792297.html" target="_blank">India-EU FTA to boost textiles, gems exports with tariff concessions on 99% of shipments</a></h3>
2) Firm global cues: In Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index were trading higher. US markets ended mostly higher on Tuesday.
<h3><a href="https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-gift-nifty-indicates-a-firm-start-us-asian-markets-mixed-2-liveblog-13793449.html" target="_blank">Stock Market LIVE Updates</a></h3>
3) Decline in India VIX: The volatility index, or fear gauge, India VIX, declined more than 2 percent to 14.13. A lower VIX indicates easing market volatility and rising investor confidence.
<h3>Technical outlook</h3>
Anand James, Chief Market Strategist, Geojit Investments Limited, said a direct rise above 25,180 on the Nifty has signalled a reversal with an upside target of 25,800, though intermediate resistance is seen near 25,580. He added that inability to clear 25,400 should be viewed with caution, while a slip below 25,080 would be required to change the current outlook. A sharp decline, however, appears less likely during the session.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

A financial journalist with over 10 years of experience, specialising in tracking stock market movements and fundamental developments that impact investors and the broader economy. A keen observer of global financial markets, I regularly engage with leading market voices to write stories. At Moneycontrol, I focus on decoding market trends, policy shifts and economic changes, driven by a constant passion to learn, analyse, and share knowledge with my readers.

Sensex gains 500 pts, Nifty near 25,300: India-EU trade deal among key factors behind market rise

Sensex news today: Sensex gains 500 pts, Nifty near 25,300: India-EU trade deal among key factors behind market rise

The equity benchmark indices Sensex and Nifty climbed in early trade on Wednesday, extending the previous session’s gains, tracking optimism over the India-European Union free trade agreement and firm global cues.

The Sensex jumped 646.49 points to 82,503.97 in early trade, while the broader Nifty surged 196.70 points to 25,372.10.

Oil &amp;amp; Natural Gas Corporation, Coal India and Axis Bank were among the top gainers in the Nifty50 pack, rising up to 6 percent, while Asian Paints and Tata Consumer Products were among the major laggards, declining up to 6 percent.
Key factors behind market rise
1) India-EU trade deal: Investor sentiment was boosted after India and the European Union sealed a free trade agreement, described as the “mother of all deals”. The agreement aims to create a market of nearly two billion people. Under the pact, tariffs on 99 percent of Indian exports to the EU will be reduced, while duties on over 97 percent of EU exports to India will be cut. The deal is expected to account for almost a quarter of global GDP.
India-EU FTA to boost textiles, gems exports with tariff concessions on 99% of shipments
2) Firm global cues: In Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index were trading higher. US markets ended mostly higher on Tuesday.
Stock Market LIVE Updates
3) Decline in India VIX: The volatility index, or fear gauge, India VIX, declined more than 2 percent to 14.13. A lower VIX indicates easing market volatility and rising investor confidence.
Technical outlook
Anand James, Chief Market Strategist, Geojit Investments Limited, said a direct rise above 25,180 on the Nifty has signalled a reversal with an upside target of 25,800, though intermediate resistance is seen near 25,580. He added that inability to clear 25,400 should be viewed with caution, while a slip below 25,080 would be required to change the current outlook. A sharp decline, however, appears less likely during the session.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Will Nifty Defend Key Levels Or Succumb To Profit Taking?| Opening Bell Live

Given global geopolitical backdrop, investors not expecting aggressive stimulus, Clarity on capex continuity, sectoral incentives, and fiscal credibility would be more reassuring, Stable, reform-oriented Budget can reinforce earnings visibility and confidence

* Given global geopolitical backdrop, investors not expecting aggressive stimulus
* Clarity on capex continuity, sectoral incentives, and fiscal credibility would be more reassuring
* Stable, reform-oriented Budget can reinforce earnings visibility and confidence

shorts/budget/daily-voice-capex-continuity-and-fiscal-credibility-reassure-more-than-aggressive-budget-stimulus-says-amnish-aggarwal

* Given global geopolitical backdrop, investors not expecting aggressive stimulus
* Clarity on capex continuity, sectoral incentives, and fiscal credibility would be more reassuring
* Stable, reform-oriented Budget can reinforce earnings visibility and confidence

According to Amnish Aggarwal, the Director- Research, Institutional Equities at PL Capital, the priority of the Union Budget should be to sustain growth momentum while preserving fiscal discipline.

With inflation under control and monetary easing already in place, the Budget’s role should focus on capital expenditure, infrastructure creation, and structural reforms that promote and increase private investment, he said in an interview with Moneycontrol.

He believes a stable, reform-oriented Budget can reinforce earnings visibility and confidence, even if it does not spark a sharp near-term rally.

Amnish Aggarwal remains constructive on the pharmaceutical and auto sectors. Banking and financial services continue to be a core area of conviction, he said.

If you were the Finance Minister, what would be your key priorities for the Union Budget 2026?

The priority should be to sustain growth momentum while preserving fiscal discipline. With inflation under control and monetary easing already in place, the Budget’s role should focus on capital expenditure, infrastructure creation, and structural reforms that promote and increase private investment.

Rather than headline tax changes, emphasis on manufacturing, defence, energy transition, and logistics-led productivity gains would support long-term economic resilience.

Do you believe the Union Budget can provide meaningful relief to the markets?

The Budget’s impact on markets is likely to be more directional than immediate. Given the global geopolitical backdrop, investors are not expecting aggressive stimulus. Instead, clarity on capex continuity, sectoral incentives, and fiscal credibility would be more reassuring. A stable, reform-oriented Budget can reinforce earnings visibility and confidence, even if it does not spark a sharp near-term rally.

Do you think market sell-offs driven by global events typically present the best investment opportunities?

Yes, global event-led corrections often create valuation-led opportunities, especially when domestic fundamentals remain supportive. India’s macro environment—marked by improving demand, lower inflation, and policy stability—suggests that recent volatility has been driven more by external factors than by any deterioration in local conditions. Such phases tend to reward disciplined, long-term investors focused on quality businesses.

Are you becoming more constructive on mid- and small-cap stocks amid the current market correction?

The correction has brought greater valuation discipline, particularly in the mid- and small-cap universe. While large caps are still preferred for near-term stability, selective opportunities are emerging in smaller companies with strong balance sheets, earnings visibility, and domestic demand exposure. However, the approach remains bottom-up, avoiding areas where earnings expectations remain vulnerable or valuations are still stretched.

Are you significantly bullish on the banking and financial services sector?

Banking and financial services continue to be a core area of conviction. Credit growth is improving, asset quality remains stable, and capital adequacy across major lenders is healthy. Incremental lending is increasingly driven by MSMEs, corporates, and secured retail segments. Large private banks and well-managed NBFCs are well positioned to benefit from both cyclical recovery and structural financialisation.

How do you assess the December quarter earnings reported so far? Have the results met your expectations?

December quarter results have been mixed but broadly encouraging. While demand trends were uneven across sectors, earnings growth has been supported by financials, metals, and select consumption-linked segments. Margin pressures persisted in some consumer and healthcare names, but overall corporate performance indicates resilience rather than stress, keeping medium-term earnings expectations largely intact.

Do you expect earnings surprises from steel companies in Q4 FY26, following the recent rally in metal prices?

There is scope for positive earnings momentum in Q4, driven by higher volumes and better realisations, even as input costs remain elevated. Steel companies could benefit from operating leverage if current price trends sustain. That said, earnings outcomes will remain sensitive to global demand conditions and export dynamics, making sector exposure best approached selectively.

Are you overweight on pharmaceuticals, as well as the auto and auto ancillary sectors, for 2026?

We remain constructive on both spaces. Pharmaceuticals are supported by steady domestic and global demand, even though margins may remain under pressure in the near term. Autos and auto ancillaries stand out due to strong domestic demand, premiumisation, EV-related opportunities, and export recovery, positioning them well for the 2026 earnings cycle.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Daily Voice: Capex continuity and fiscal credibility reassure more than aggressive Budget stimulus, says Amnish Aggarwal

According to Amnish Aggarwal, the Director- Research, Institutional Equities at PL Capital, the priority of the Union Budget should be to sustain growth momentum while preserving fiscal discipline.

With inflation under control and monetary easing already in place, the Budget’s role should focus on capital expenditure, infrastructure creation, and structural reforms that promote and increase private investment, he said in an interview with Moneycontrol.

He believes a stable, reform-oriented Budget can reinforce earnings visibility and confidence, even if it does not spark a sharp near-term rally.

Amnish Aggarwal remains constructive on the pharmaceutical and auto sectors. Banking and financial services continue to be a core area of conviction, he said.

If you were the Finance Minister, what would be your key priorities for the Union Budget 2026?

The priority should be to sustain growth momentum while preserving fiscal discipline. With inflation under control and monetary easing already in place, the Budget’s role should focus on capital expenditure, infrastructure creation, and structural reforms that promote and increase private investment.

Rather than headline tax changes, emphasis on manufacturing, defence, energy transition, and logistics-led productivity gains would support long-term economic resilience.

Do you believe the Union Budget can provide meaningful relief to the markets?

The Budget’s impact on markets is likely to be more directional than immediate. Given the global geopolitical backdrop, investors are not expecting aggressive stimulus. Instead, clarity on capex continuity, sectoral incentives, and fiscal credibility would be more reassuring. A stable, reform-oriented Budget can reinforce earnings visibility and confidence, even if it does not spark a sharp near-term rally.

Do you think market sell-offs driven by global events typically present the best investment opportunities?

Yes, global event-led corrections often create valuation-led opportunities, especially when domestic fundamentals remain supportive. India’s macro environment—marked by improving demand, lower inflation, and policy stability—suggests that recent volatility has been driven more by external factors than by any deterioration in local conditions. Such phases tend to reward disciplined, long-term investors focused on quality businesses.

Are you becoming more constructive on mid- and small-cap stocks amid the current market correction?

The correction has brought greater valuation discipline, particularly in the mid- and small-cap universe. While large caps are still preferred for near-term stability, selective opportunities are emerging in smaller companies with strong balance sheets, earnings visibility, and domestic demand exposure. However, the approach remains bottom-up, avoiding areas where earnings expectations remain vulnerable or valuations are still stretched.

Are you significantly bullish on the banking and financial services sector?

Banking and financial services continue to be a core area of conviction. Credit growth is improving, asset quality remains stable, and capital adequacy across major lenders is healthy. Incremental lending is increasingly driven by MSMEs, corporates, and secured retail segments. Large private banks and well-managed NBFCs are well positioned to benefit from both cyclical recovery and structural financialisation.

How do you assess the December quarter earnings reported so far? Have the results met your expectations?

December quarter results have been mixed but broadly encouraging. While demand trends were uneven across sectors, earnings growth has been supported by financials, metals, and select consumption-linked segments. Margin pressures persisted in some consumer and healthcare names, but overall corporate performance indicates resilience rather than stress, keeping medium-term earnings expectations largely intact.

Do you expect earnings surprises from steel companies in Q4 FY26, following the recent rally in metal prices?

There is scope for positive earnings momentum in Q4, driven by higher volumes and better realisations, even as input costs remain elevated. Steel companies could benefit from operating leverage if current price trends sustain. That said, earnings outcomes will remain sensitive to global demand conditions and export dynamics, making sector exposure best approached selectively.

Are you overweight on pharmaceuticals, as well as the auto and auto ancillary sectors, for 2026?

We remain constructive on both spaces. Pharmaceuticals are supported by steady domestic and global demand, even though margins may remain under pressure in the near term. Autos and auto ancillaries stand out due to strong domestic demand, premiumisation, EV-related opportunities, and export recovery, positioning them well for the 2026 earnings cycle.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Indian benchmark indices Sensex and Nifty are likely to open higher on January 28, supported by positive cues from GIFT Nifty, which was trading higher at around 25,453.

Track the latest updates on GIFT Nifty right here on Moneycontrol.

Indian equity benchmark indices ended higher on January 27, recouping part of the losses from the previous session in a highly volatile trade, led by metal, financial, IT and oil &amp;amp; gas stocks. Also, the market sentiment received a modest lift following India–European Union trade agreement.

At close, the Sensex was up 319.78 points or 0.39 percent at 81,857.48, and the Nifty was up 126.75 points or 0.51 percent at 25,175.40.

Here is how financial markets across the globe fared overnight:

GIFT Nifty (Up)

The GIFT Nifty is trading higher at around 25,453, indicating a positive start for the day.

Asian Equities (Mixed)

Asia-Pacific markets opened mostly higher on Wednesday, tracking gains on Wall Street after the S&amp;amp;P 500 closed at a record high.



US Equities (Mixed)

The S&amp;amp;P 500 barely managed a record closing high on Tuesday, its fifth straight day of gains with investor ​optimism ahead of megacap earnings reports being countered by a mixed reception to the latest earnings reports and a massive selloff in health insurer stocks.

The Dow Jones Industrial ⁠Average fell 408.99 points, or 0.83%, to 49,003.41, the S&amp;amp;P 500 gained 28.37 points, or 0.41%, to 6,978.60 and the Nasdaq Composite gained 215.74 points, or 0.91%, to 23,817.10.



US Bond Yield (Down)

Yields on the 10-year and 2-year US Treasuries were down marginally at 4.22% and 3.55%, respectively, in the early trade on Wednesday.



Dollar Index (Slips)

The dollar was on the ropes near multi-year lows on Wednesday after investors sold it aggressively when U.S. President Donald Trump seemed to shrug off its recent decline, while Wall Street marched on to fresh record highs.



Asian Currencies (Gain)

Asian currencies gained as the dollar sank to levels last seen four years ago as investors turned cautious toward the world’s reserve currency amid unpredictable policymaking from Washington.



Crude (Rises)

Oil held near a 16-week high after the dollar slumped, while traders also monitored US President Donald Trump’s threats against Iran.



Gold (Up)

Gold surged above $5,200 an ounce on Wednesday to a record high, extending a historic rally as economic and geopolitical uncertainty drove demand for the safe-haven yellow metal.



Fund Flow Action

On January 27, foreign institutional investors (FIIs) were net sellers in the equity market, offloading shares worth over Rs 3,000 crore, while domestic institutional investors (DIIs) provided strong support by purchasing equities worth nearly Rs 9,000 crore.



Hope you're all set for today's trade. We wish you a profitable day ahead.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Tick: Top global cues to watch in today’s trade

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