Indian markets surged as the India-EU Free Trade Agreement boosted investor confidence. Sensex and Nifty rose sharply, led by Bharat Electronics, metals, and oil and gas sectors. Midcap and smallcap stocks also saw strong buying momentum.
Indian Markets Surge on India-EU Free Trade Deal
New Delhi: The Indian stock market witnessed robust buying on 28 January. The BSE Sensex rose by 487.20 points, closing at 82,344.68, while the Nifty 50 gained 167.35 points, ending at 25,342.75. This marked the second consecutive day of gains in the market.
The rally was primarily supported by the India-European Union (EU) Free Trade Agreement, widely referred to as the “Mother of All Deals”, as well as positive global market cues. These factors boosted investor sentiment and encouraged buying across various sectors.
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Most stocks in the Sensex closed in positive territory, with Bharat Electronics leading the gains, surging over 8% on BSE. Other major gainers included Eternal, Power Grid, Bajaj Finance, and Trent.
On the other hand, stocks like Asian Paints, Maruti Suzuki India, Sun Pharmaceutical, and Infosys were among the top laggards, showing a decline or muted gains.
The market rally extended to midcap and smallcap stocks as well.
The Nifty Midcap 100 Index jumped 1.71%, reflecting strong investor interest in mid-sized companies.
The Nifty Smallcap 100 Index rose 2.23%, showing broad-based participation in smaller companies.
This indicates that the buying momentum was not limited to large-cap stocks but spread across all market segments.
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Sector-wise, most indices ended in the green, with notable gains in oil & gas, metals, and media.
Nifty Oil & Gas Index: +3.40%
Nifty Metal Index: +2.34%
Nifty Media Index: +2.13%
Nifty Realty: +1.57%
Nifty PSU Banks: +1.68%
Other sectors such as Auto (+0.69%), IT (+0.41%), Private Banks (+0.56%), and Nifty Financial Services (+1.06%) also saw moderate gains.
Meanwhile, FMCG (-0.71%), Pharma (-0.22%), and Healthcare (-0.20%) were the few sectors that witnessed slight declines.
The key driver of the rally was the India-EU Free Trade Agreement, which is expected to open up trade with a market of approximately 2 billion people. Key benefits include:
99% of Indian exports to the EU will see reduced tariffs, making Indian goods more competitive.
97% of EU products entering India will also face lower duties, making imports cheaper and facilitating smoother trade.
In addition, strong global market trends and robust sector-specific buying in metals, oil & gas, and real estate sectors further supported market momentum.
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Overall, the Indian stock market displayed broad-based gains, reflecting optimism among investors about both domestic economic reforms and international trade opportunities.
