The Indian benchmark indices jumped over 483.26 points to close at 82,340.74 and the Nifty ended at 25,342.75 rising more than 167 points.
In the 30-share BSE Sensex, among the top gainers were stocks like Bharat Electronics, Eternal, Bajaj Finance, PowerGrid and Trent. Meanwhile, the laggards included stocks like IndiGo, Hindustan Unilever, Titan, Bharti Airtel and Infosys.
In the broader markets, the Nifty Smallcap 100 jumped 2.26 per cent, as volatility remained high. Sectorally, the Nifty Oil & Gas Index increased 3.40 per cent.
Previously, 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.
India–EU Trade Pact Lifts Sentiment
Investor sentiment remained positive after the announcement of the India–European Union free trade agreement, which policymakers have termed the “mother of all deals”. The pact is expected to create a combined market of nearly two billion people, with trade and defence cooperation anchoring a new five-year strategic roadmap unveiled by Prime Minister Narendra Modi alongside senior EU leaders.
Officials said the agreement would eliminate tariffs on 99 per cent of Indian exports to the EU and reduce duties on over 97 per cent of EU exports to India. The deal is projected to encompass almost one-fourth of global GDP, highlighting its long-term importance for India’s trade and investment outlook.
Institutional Activity Remains Mixed
Foreign Institutional Investors (FIIs) continued to trim their exposure to Indian equities, selling shares worth Rs 3,068.49 crore on Tuesday, as per exchange data. In contrast, Domestic Institutional Investors (DIIs) stepped in with significant buying, purchasing equities worth Rs 8,999.71 crore.
“FIIs continued their selling spree with cash market selling of around Rs 3,068 crore. DIIs, flush with funds, aggressively bought beaten-down, fundamentally strong stocks for a massive Rs 8,999 crore,” said V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
He noted that while the India–EU trade agreement is a strong long-term positive, market attention is now turning to the Union Budget scheduled for February 1.
Global Markets Offer Support
Asian markets traded on a mixed note. South Korea’s Kospi, Shanghai’s SSE Composite and Hong Kong’s Hang Seng were trading higher, while Japan’s Nikkei 225 was lower in early deals.
US equity markets ended mostly higher on Tuesday, lending support to overall risk appetite.
Oil Prices Tick Up
Brent crude, the global oil benchmark, rose 0.52 per cent to $67.92 per barrel, as traders tracked global demand signals and geopolitical developments.
Benchmarks End Higher After Volatile Session
Both key indices closed higher on Tuesday following a choppy trading session, supported by strong buying in banking and metal stocks, favourable global cues and optimism around the India–EU free trade agreement.
However, gains were limited by muted third-quarter corporate earnings growth and continued foreign portfolio investor selling, which kept sentiment cautious, according to market participants.
The Sensex gained 319.78 points, or 0.39 per cent, to close at 81,857.48, after moving between 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 finish at 25,175.40.
