Indian equity markets closed higher on January 27, 2026, with the Sensex climbing 319.77 points, or 0.39 percent, to 81,857.48. The Nifty 50 also rose 126.75 points, or 0.51 percent, settling at 25,175.40.Market sentiment received a significant boost from the announcement of a free trade agreement (FTA) between India and the European Union.This deal, described as a "mother of all deals," aims to remove or reduce tariffs on a wide range of goods.Despite the overall market rally, several major companies reported their third-quarter fiscal year 2026 earnings, showing varied performances.[m+4]
Banking Sector Sees Mixed Q3 Results
Two major private sector banks, Axis Bank and Kotak Mahindra Bank, released their Q3 FY26 results for the quarter ending December 31, 2025. Axis Bank announced its results on January 26, 2026, reporting a 3 percent year-on-year increase in standalone net profit to ₹6,490 crore. The bank's Net Interest Income (NII) grew 5 percent year-on-year to ₹14,287 crore, and its Net Interest Margin (NIM) stood at 3.64 percent. Axis Bank also saw strong loan growth, with advances rising 14 percent year-on-year to ₹11,59,052 crore. Totaldeposits climbed 15 percent to ₹12,60,786 crore, and its asset quality improved, with Gross Non-Performing Assets (NPA) at 1.40 percent. Axis Bank shares gained 4.60 percent on January 27, 2026, closing at 1,316.[livemint+5]
In contrast, Kotak Mahindra Bank reported its Q3 FY26 results on January 27, 2026, posting a 4 percent year-on-year rise in standalone net profit to ₹3,446 crore. This figure fell short of market expectations. The bank's Net Interest Income (NII) increased 5 percent year-on-year to ₹7,565 crore. However, Net Interest Margins (NIMs) remained flat at 4.54 percent quarter-on-quarter, also missing analyst projections. Higher employee costs, partly due to the new Labour Code implementation, impacted the bank's profitability. Despite improving asset quality, with Gross NPA at 1.30 percent and Net NPA at 0.31 percent, Kotak Bank shares fell over 4 percent on January 27, 2026, making it one of the Nifty 50's top losers.[m+7]
Industrials and FMCG in Focus
UltraTech Cement was a notable gainer on January 27, 2026, with its share price rising 1.78 percent to 12589.00. The companywas among the Nifty 50's top performers for the day. Trading volume for UltraTech Cement reached 926,373 shares.[angelone+2]
In the Fast-Moving Consumer Goods (FMCG) sector, Marico made headlines with its Q3 FY26 results and a strategic acquisition. Marico reported a 12.03 percent increase in consolidated net profit, reaching ₹447 crore in Q3 FY26, compared to ₹399 crore in the same quarter last year. The company also announced on January 27, 2026, its plan to acquire a majority stake in the premium popcorn brand 4700BC from multiplex operator PVR INOX for ₹226.8 crore. This acquisition values 4700BC at ₹243 crore, a substantial increase from PVR's initial investment. Marico aims to expand 4700BC's presence by leveraging its distribution network and expects its food and premium personal care segments to contribute 25 percent of domestic revenue within three years.[angelone+1]
PVR INOX, on the other hand, divested its 93.27 percent stake in Zea Maize Private Limited, the parent company of 4700BC, to Marico. This transaction, approved on January 26, 2026, is expected to improve PVR INOX's profit, free cash flow, and return ratios, without significantly affecting its in-cinema food and beverage revenues. PVR INOX Managing Director Ajay Bijli stated this move monetizes a non-core asset. Following the announcement, PVR INOX shares slipped 0.4 percent.
Asian Paints also announced its Q3 FY26 results on January 27, 2026, for the quarter ending December 31, 2025. The company reported a 4.6 percent year-on-year decline in consolidated net profit to ₹1,060 crore. However, revenue fromoperations increased by approximately 4 percent year-on-year to ₹8,867.02 crore. The India decorative business achieved a robust 7.9 percent volume growth. The net profit decline was partly due to exceptional items totaling ₹157.61 crore, including costs related to the new Labour Code implementation and an impairment loss on intangible assets. Asian Paints shares tumbled 5 percent after the earnings announcement.[business-standard+3]
Meanwhile, HFCL's board is scheduled to meet on February 3, 2026, to approve its Q3 FY26 financial results. Initial reports suggest that for the quarter ended December 31, 2025, HFCL's consolidated profit after tax declined 11.95 percent year-on-year to ₹72.58 crore, with consolidated revenue from operations falling 1.97 percent to ₹1,011.95 crore.[m]
Sectoral Outlook: Textiles and Auto Ancillaries
The Indian textile sector is poised for significant growth following the India-EU Free Trade Agreement. Union Minister of Commerce and Industry Piyush Goyal stated on January 27, 2026, that Indian textile exports to the EU could rapidly increase from USD 7 billion to USD 30-40 billion. This expansion is expected togenerate 6-7 million jobs. The FTA will eliminate tariffs on 100 percent of apparel tariff lines, providing a major boost to market access in the EU. The overall Indian textile and apparel market, valued at USD 248.70 billion in 2025, is projected to grow at a compound annual growth rate of 11.38 percent from 2026-2034, reaching USD 656.31 billion by 2034. The government also launched the District-Led Textiles Transformation (DLTT) Plan in January 2026 to foster sustainable development in the sector.[livemint+1]
The auto ancillary sector also showed robust performance. The Indian auto components industry grew 6.8 percent year-on-year to ₹3.56 lakh crore ($41.2 billion) in the first half of fiscal year 2026. This growth was fueled by strong domestic demand, a resilient aftermarket, and increased sales to Original Equipment Manufacturers (OEMs), which rose 7.3 percent. Exports for auto components grew 9.3 percent to $12.1 billion. The sector anticipates strong demand in Q3 FY26, partly due to a Goods and Services Tax (GST) cut. Electric vehicles now constitute 4.6 percent of OEM supplies, indicating a shift in the industry.
TCPL Packaging exhibited strong intraday performance earlier in January, surging 7.51 percent on January 6, 2026, to an intraday high of ₹3,205.95. This outperformance was notably higher than the broader market. The company's revenue growth has also benefited from softening input costs. TCPL Packaging provided ₹10 million in funding to Creative Offset Printers Private Limited in December 2025.[samco+1]
As the market navigates global trade agreements and corporate earnings, investors continue to watch these key stocks and sectors for further developments.
