MUMBAI, India — India’s benchmark equity indices ended higher after a volatile trading session, buoyed by improved investor sentiment following the announcement of a bilateral trade agreement between India and the European Union.
The Nifty 50 rose 0.51 percent, gaining 126.75 points to close at 25,175.40, while the Sensex advanced 319.78 points, or 0.39 percent, to settle at 81,857.48.
“A sustained breakout above 25,400 would be required to revive a stronger bullish trend, while a decisive breakdown below 25,000 could invite accelerated selling toward the 24,900–24,600 zone,” an expert said.
“Until a directional trigger emerges, the index is likely to remain confined within the 24,900–25,200 consolidation band,” the expert added.
Market sentiment was supported by expectations that the India–EU trade deal will significantly expand bilateral trade. Under the agreement, exports of European Union goods to India are projected to double by 2032, with tariffs on nearly 96.6 percent of EU goods exported to India set to be eliminated or reduced. At the same time, the European Union will remove or lower tariffs on about 99.5 percent of goods imported from India.
Despite the positive close, several heavyweight stocks dragged on the indices. Shares of Mahindra & Mahindra, Asian Paints, Kotak Mahindra Bank, Eternal, ITC, and Maruti Suzuki India ended lower, with some stocks declining by as much as 4 percent.
Gains in stocks such as Axis Bank, Adani Ports, NTPC, Tech Mahindra, Tata Steel, and State Bank of India helped offset the losses, with several advancing by up to 5 percent.
Broader markets also reflected positive sentiment. The Nifty Midcap 100 index ended 0.59 percent higher, while the Nifty Smallcap 100 gained 0.41 percent.
Among sectoral indices, metals led the gains, with the Nifty Metal index jumping 3 percent. In contrast, the Nifty Media index declined 1.4 percent, and the Nifty Auto index ended 0.9 percent lower.
Analysts said markets managed to close in positive territory as investors focused on the long-term trade benefits expected from the India–EU agreement, even as stock-specific selling and sectoral weakness kept volatility elevated.
“In the near term, investors are awaiting the U.S. Fed’s upcoming interest rate decision and the Union Budget for future direction,” an analyst said. (Source: IANS)
