MUMBAI, India — India’s benchmark stock indices ended higher on Tuesday after a volatile trading session, as investor sentiment improved following the announcement of a bilateral trade agreement between India and the European Union.
The Nifty rose 0.51 percent, or 126.75 points, to close at 25,175.40, while the Sensex gained 319.78 points, or 0.39 percent, to settle at 81,857.48 by the end of trading.
“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.
Under the trade agreement, European Union goods exports to India are expected to double by 2032, as tariffs on nearly 96.6 percent of EU goods exported to India will be eliminated or reduced. In return, the EU will remove or lower tariffs on about 99.5 percent of goods imported from India, improving trade prospects for both sides.
Despite the overall gains, several heavyweight stocks dragged on the market. Shares of Mahindra & Mahindra, Asian Paints, Kotak Mahindra Bank, Eternal, ITC and Maruti Suzuki India ended lower, with some declining by as much as 4 percent.
Buying interest, however, was seen in Axis Bank, Adani Ports, NTPC, Tech Mahindra, Tata Steel and State Bank of India, which rose by up to 5 percent and helped support the indices.
Broader markets also reflected positive sentiment, with the Nifty Midcap 100 index rising 0.59 percent and the Nifty Smallcap 100 gaining 0.41 percent.
Among sectoral indices, metals led the rally, with the Nifty Metal index jumping 3 percent. In contrast, the Nifty Media index fell 1.4 percent, while the Nifty Auto index ended 0.9 percent lower.
Analysts said markets managed to close higher as investors reacted to 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)
