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Sensex, Nifty Rise on India-EU Trade Deal; PSUs Lead Rally

Indian equity benchmarks ended Wednesday's volatile session with modest gains, supported by positive sentiment from the finalization of the India-European Union Free Trade Agreement. The Sensex rose 0.60% to close at 82,345, while the Nifty gained 0.66% to finish at 25,343. Broader markets significantly outperformed, with midcap and smallcap indices rising over 1.5% and 2% respectively, led by rallies in PSU, oil & gas, and metal stocks. However, the session saw selective profit-booking in FMCG and IT names, with stocks like Tata Consumer Products and Infosys ending lower.

Key Points: Sensex, Nifty Gain as India-EU FTA Lifts Market Sentiment

  • Sensex gains 487 points
  • Nifty closes above 25,340
  • PSU and metal indices surge
  • Broader markets outperform benchmarks
2 min read

Sensex, Nifty end higher as India-EU FTA lifts sentiment

Indian markets closed higher amid volatility. The India-EU Free Trade Agreement boosted sentiment, with PSU and metal stocks leading gains while FMCG declined.

"Domestic markets displayed continued optimism, supported by the India-EU FTA - expert"

Mumbai, Jan 28

Indian equity benchmark indices Sensex and Nifty ended Wednesday's session with modest gains, managing to stay in the green despite sharp volatility through the day.

Investor sentiment was influenced by December-quarter earnings announcements and the finalisation of the India-European Union Free Trade Agreement.

The Sensex closed at 82,345, rising 487 points, or 0.60 per cent. During the session, the index moved between a high of 82,504 and a low of 81,815 as markets swung between gains and losses.

The Nifty also posted a positive close, ending the day at 25,343, up 167 points, or 0.66 per cent.

The index touched an intra-day high of 25,372 and slipped to a low of 25,188 before recovering towards the close.

"While the index continues to trade below its short-term moving averages -- indicating near-term caution -- immediate resistance is seen at 25,400-25,450, followed by a stronger supply zone at 25,600-25,650, aligned with the 20/50-EMA cluster," an analyst mentioned.

Shares of Bharat Electronics Limited surged 9 per cent, emerging as the top gainer on both the Sensex and Nifty.

Other stocks that supported the market included ONGC, Coal India, Hindalco, Bajaj Finance, Power Grid, Adani Enterprises, Trent, Mahindra & Mahindra, Cipla and Shriram Finance.

On the losing side, Tata Consumer Products fell 4.5 per cent. Stocks such as Asian Paints, Maruti Suzuki, Sun Pharma, Max Healthcare, Dr Reddy's Laboratories, Infosys and Eicher Motors also ended lower, with losses of up to 4.2 per cent.

Broader markets continued to outperform the benchmark indices. The Nifty Midcap 100 index rose 1.66 per cent, while the Nifty Smallcap 100 gained a stronger 2.26 per cent.

Sectorally, public sector undertakings led the rally. The Nifty CPSE index jumped 5 per cent, while the Nifty Oil and Gas index gained 3.4 per cent.

The Nifty Metal index advanced 2.3 per cent and the Nifty PSU Bank index climbed 1.7 per cent, helping the market end the session on a positive note.

"Domestic markets displayed continued optimism, supported by the India-EU FTA," an expert stated.

"Broader indices outperformed, driven by strength in Metals, Financials, and Oil & Gas, while FMCG stocks saw profit-booking amid investor shift toward cyclical sectors," an analyst stated.

- IANS

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Reader Comments

P
Priya S
Good to see the market ending in green. But the volatility is worrying for small retail investors like me. One day up, next day down. Hope this FTA brings some stability and not just a one-day wonder.
V
Vikram M
Midcap and Smallcap outperforming again! That's where the real action is. My portfolio is heavy on these and it's paying off. BEL up 9% is fantastic. The focus should be on these broader indices, not just Sensex and Nifty.
S
Sarah B
As an investor watching from abroad, this FTA is a very positive signal. It shows India is serious about integrating with major global economies. The EU market access for Indian companies is huge. Cautiously optimistic.
R
Rohit P
The analyst says "near-term caution" but everyone is celebrating. We need to be careful. The resistance at 25,600 is strong. Let's see if this rally sustains or if it's just FOMO buying. Profit booking in FMCG is a clear sector rotation.
K
Kavya N
Happy to see my holdings in ONGC and Coal India doing well! The PSU theme is strong. Hope the government keeps up this momentum. The FTA details matter though - what did we give up to get this deal? Need more transparency.

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