Sensex Ends Up 320 Points, Nifty Gains 127 After Volatile Trade As India-EU Deal Lifts Sentiment

Mumbai: Indian stock market benchmarks ended higher on Tuesday after a highly volatile trading session, as positive sentiment from the India-European Union trade agreement helped offset stock-specific selling pressure. Investors remained cautious during the day, but steady buying in select heavyweight stocks supported the benchmarks by the close.

The Nifty 50 index rose 0.51 percent, or 126.75 points, to end at 25,175.40, while the BSE Sensex gained 319.78 points, or 0.39 percent, to settle at 81,857.48.

India-EU Trade Deal Boosts Sentiment

Market mood improved after the announcement of a major trade agreement between India and the European Union. Under the deal, tariffs on nearly 96.6 percent of EU goods exported to India will be reduced or removed. This is expected to help EU exports to India double by 2032.

At the same time, the EU will cut or eliminate tariffs on about 99.5 percent of goods imported from India. Analysts believe the agreement will support long-term trade growth, improve export opportunities for Indian companies, and strengthen economic ties between the two regions.

Heavyweights Show Mixed Performance

Despite the positive close, several large stocks put pressure on the market during the session. Shares of Mahindra & Mahindra, Asian Paints, Kotak Mahindra Bank, ITC, Maruti Suzuki India and Eternal ended lower, with some stocks falling up to 4 percent.

In contrast, strong buying was seen in Axis Bank, State Bank of India, Adani Ports, NTPC, Tech Mahindra and Tata Steel. Gains of up to 5 percent in these stocks helped the indices recover from intraday losses.

Broader Markets and Sectoral Trends

Broader markets also ended in positive territory. The Nifty Midcap 100 index rose 0.59 percent, while the Nifty Smallcap 100 gained 0.41 percent.

Among sectors, metals led the rally, with the Nifty Metal index jumping 3 percent, supported by global cues and trade optimism. However, the Nifty Media index fell 1.4 percent, while the Nifty Auto index ended 0.9 percent lower.

What Investors Are Watching Next?

Analysts said markets closed higher mainly due to optimism around the India-EU trade deal, even as volatility remained high. In the near term, investors are closely tracking the US Federal Reserve’s interest rate decision and the upcoming Union Budget for clearer market direction.