Sensex, Nifty End Higher As India–EU Trade Deal Lifts Market Sentiment

India’s benchmark stock market indices ended higher on Tuesday after a highly volatile trading session, buoyed by improved investor sentiment following the announcement of a bilateral trade deal between India and the European Union.

At the close of trade, the Nifty rose 0.51 per cent, gaining 126.75 points to settle at 25,175.40.

The Sensex also finished in positive territory, advancing 319.78 points, or 0.39 per cent, to close at 81,857.48.

Market experts noted that a sustained breakout above the 25,400 level would be required to revive a stronger bullish trend.

Conversely, a decisive fall below 25,000 could trigger accelerated selling towards the 24,900–24,600 zone.

Until a clear directional trigger emerges, the index is likely to trade within the 24,900–25,200 consolidation range.

The India–EU agreement will double EU goods exports to India by 2032 by eliminating or reducing tariffs on nearly 96.6 per cent of EU products.

In return, the European Union will remove or lower tariffs on about 99.5 per cent of goods imported from India, improving trade prospects for both sides.

Despite the overall gains, several heavyweight stocks such as Mahindra & Mahindra, Asian Paints, Kotak Mahindra Bank, ITC and Maruti Suzuki India ended lower, with some declining up to 4 per cent.

Investors bought Axis Bank, Adani Ports, NTPC, Tech Mahindra, Tata Steel and State Bank of India, with these stocks rising by up to 5 per cent and supporting the indices.

Broader markets also advanced, with the Nifty Midcap 100 gaining 0.59 per cent and the Nifty Smallcap 100 rising 0.41 per cent. Among sectors, metals outperformed, while media and auto stocks lagged.

Analysts said investors are now awaiting the US Federal Reserve’s interest rate decision and the Union Budget for further market direction.

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