indiaustrade

Based on the data you've shared and the breaking news from **Thursday, January 29, 2026**, here is a deep dive into the specific drivers moving these markets today.

The global trading session is currently defined by two massive narratives: the **India-EU Free Trade Agreement (FTA)** and the **Federal Reserve's defiance** of political pressure.

### 1. 🇪🇺 🇮🇳 The "Mother of All Deals" (Euro & Indian Markets)

**Status:** Driving European shares (+1.0%) and Indian markets (+0.4%) higher.

The **India-EU FTA**, signed just two days ago on Jan 27, is the primary engine behind today's optimism. This deal creates a combined market of **$27 trillion** and is being called the "Mother of All Deals" by trade analysts.

* **The Big Win for Europe:** European automakers (like Volkswagen and Mercedes) finally have access to the Indian market. Import duties on cars, which were previously as high as **110%**, have been slashed to **30%** (and will eventually go to 10%). This is boosting the CAC 40 and DAX.
* **The Big Win for India:** India secures zero-duty access for **99%** of its exports to the EU, specifically benefiting textiles, leather, and gems. This is why Indian mid-cap manufacturing stocks are rallying today alongside the Nifty 50.

### 2. 🇺🇸 The Fed's "Iron Wall" (U.S. Futures)

**Status:** Slightly Green (+0.1% - 0.3%)

The Federal Reserve announced yesterday (Jan 28) that it is **holding interest rates steady at 3.50% – 3.75%**.

* **Why this matters:** Despite intense pressure from the White House to cut rates further, Fed Chair Jerome Powell signaled that the economy is in a "good place" with solid expansion.
* **The "Good Place" Stance:** Traders are interpreting this "hold" as a sign of economic strength rather than a policy error. The market is relieved that the Fed is not panic-cutting, which has stabilized U.S. futures this morning.

### 3. 🇮🇳 Economic Survey 2026 (Indian Markets)

**Status:** Nifty & Sensex at Record Highs

The **Economic Survey 2025-26**, tabled in Parliament today, has projected a GDP growth of **6.8% – 7.2%** for the upcoming fiscal year.

* **Key Insight:** This projection is slightly higher than global estimates, reinforcing India's status as the fastest-growing major economy. The survey highlights a "capex cycle" revival, suggesting that private companies are finally spending heavily on factories and machinery—a bullish signal for infrastructure and banking stocks.

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### 📊 Watchlist: Sectors in Play Today

| Sector | Sentiment | Why? |
| --- | --- | --- |
| **Indian Auto** | 🔻 Bearish / Volatile | Domestic manufacturers (like Tata Motors, M&M) face new competition from cheaper European imports due to the FTA. |
| **European Luxury** | 🟢 Bullish | LVMH, Kering, and auto giants gain cheaper access to India's wealthy consumer base. |
| **Indian IT** | 🟢 Bullish | The FTA includes agreements on service exports, making it easier for Indian tech firms to operate in Europe. |
| **Gold** | 🟢 Bullish | Trading near **$2,760/oz** (approx ₹82,000/10g) as a hedge against the U.S. political tension regarding the Fed. |

**Would you like me to analyze the specific winners and losers in the Indian Auto sector following the tariff cuts?#IndiaUSTrade

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