Dalal Street remained cautiously optimistic on Wednesday morning, after India and the EU announced a landmark free trade agreement yesterday. The BSE Sensex started the session near 82,200, climbing more than 350 points, while the NSE Nifty50 opened trading around 25,300, clocking a surge of nearly 130 points, as of 9:15 AM.
In the pre-open hour, the Sensex tested 81,900 and the Nifty inched over 25,250, near 9:11 AM. Notably, both benchmarks ended Tuesday’s session higher after a volatile day of trade, supported by strong buying in banking and metal stocks, positive global cues and optimism following the announcement of the India–European Union free trade agreement (FTA).
Gains, however, were capped by subdued third-quarter corporate earnings growth and persistent selling by foreign portfolio investors, which kept investor sentiment guarded, market participants said.
The Sensex rose 319.78 points, or 0.39 per cent, to close at 81,857.48. During the session, the index swung sharply, touching an intra-day high of 82,084.92 and a low of 81,088.59. The Nifty advanced 126.75 points, or 0.51 per cent, to settle at 25,175.40.
India-EU Trade Deal Lifts Sentiment
Investor mood received a boost from the announcement of a landmark free trade agreement between India and the European Union. The EU accounts for about 25 per cent of global GDP and nearly one-third of global trade, making the pact a significant strategic development, especially against the backdrop of prolonged uncertainty surrounding the India–US trade deal.
Indian equities, however, continued to trade with a measured and cautious undertone. “The finalisation of the India–European Union bilateral trade agreement lent some support to investor sentiment amid a broader risk-off environment triggered by US tariff measures. However, sustained selling by foreign portfolio investors and muted third-quarter corporate earnings growth capped any meaningful upside in domestic equities,” said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm.
India and the EU formally announced the conclusion of what has been described as the ‘mother of all trade deals’, at a time when global trade flows remain under pressure due to tariff-led disruptions.
Prime Minister Narendra Modi said India has concluded the largest free trade agreement in its history with the European Union following summit-level talks with the bloc’s leadership.
