**Global & Indian Market Update — January 29, 2026** **Market Pulse: Bulls in Control** Global and domestic equities are riding a wave of optimism, pushing key indices to historic milestones. The **S&P 500** has shattered the psychological barrier, crossing **7,000** for the first time, fueled by sustained AI optimism and resilience in the US labor market. In India, the bulls are firmly in charge. The **Nifty 50** closed decisively above the **25,300** mark, settling at **25,342**, while the **Sensex** advanced over **480 points** to end at **82,344**. The broader markets outperformed benchmarks, with Mid-Cap and Small-Cap indices rising nearly **1.7%** and **1.8%** respectively, indicating broad-based buying interest. **Key Driver: India-EU Free Trade Agreement** The primary catalyst for the domestic rally is the conclusion of the India-European Union Free Trade Agreement (FTA). Described by officials as the "mother of all deals," this pact is expected to eliminate tariffs on **99%** of Indian exports to the EU. Sectors likely to benefit—such as textiles, machinery, and defense—saw immediate traction. **Bharat Electronics** surged over **9%** on the back of strong earnings and sector optimism. This agreement is viewed as a critical counter-balance to ongoing global trade disruptions and US tariff uncertainties. **Commodities: Gold’s Historic Run** Precious metals are witnessing an unprecedented rally. **Gold** prices have broken through the **$5,400 per ounce** level, with spot prices testing **$5,500**. This surge is driven by a weakening US Dollar, which has slumped to four-year lows, and persistent central bank buying. Investors are flocking to safe havens amidst geopolitical friction and fiscal concerns in Western economies. **Crude Oil** remains stable but buoyant, with **Brent Crude** trading around **$67 per barrel**, finding support from a weaker dollar despite comfortable supply levels. **Crypto Markets: Bitcoin Consolidates** The cryptocurrency sector is seeing a period of consolidation after its recent explosive growth. **Bitcoin (BTC)** is hovering between **$88,000** and **$90,000**, reacting to the Federal Reserve's decision to hold interest rates steady. **Ethereum (ETH)** is trading near **$3,000**, with market dominance holding steady. While the immediate momentum has cooled slightly, the long-term trend remains supported by institutional interest and the "risk-on" sentiment spilling over from equity markets. **Central Bank Action: The Fed Holds** The US Federal Reserve has kept interest rates unchanged at **3.50%–3.75%**. Chairman Jerome Powell signaled that while inflation remains sticky, the labor market is stabilizing. The decision was not unanimous, with two officials favoring a cut, which has kept hopes alive for monetary easing later in 2026. This "dovish hold" has put downward pressure on yields and the dollar, further boosting non-yielding assets like Gold and Crypto. **Sector Spotlight** * **Defense & PSUs:** Major gainers following the FTA announcement and strong quarterly numbers. * **Banking:** **Axis Bank** jumped **4%** post-results, signaling robust credit demand. * **Metals:** Supported by a weaker dollar and hopes of European demand recovery. * **Tech:** US tech stocks continue to lead, with spillover effects aiding Indian IT counters despite currency headwinds. **Outlook** Volatility is expected to remain high as markets digest the full implications of the India-EU pact and the Fed's future path. Key support for Nifty is seen at **25,150**, with immediate resistance near **25,600**. Investors are advised to watch for profit-booking in high-flying mid-caps while maintaining focus on quality large-caps benefiting from the new trade regime.