Markets rebound as India-EU trade deal spurs rally on D-St
Tariffs on nearly 96.6% of EU goods exported to India will be eliminated or reduced. EU will remove or lower tariffs on about 99.5% Indian goods
Mumbai: Equity benchmark indices Sensex and Nifty ended higher in highly volatile trade on Tuesday, buoyed by heavy buying in bank and metal stocks, a firm trend in global markets and optimism over India-EU FTA. However, muted corporate earnings growth and continued flight of foreign capital from Indian equities restricted the gains, traders said.
The 30-share BSE Sensex climbed 319.78 points, or 0.39 per cent, to settle at 81,857.48. During the day, it hit a high of 82,084.92 and a low of 81,088.59. The 50-share NSE Nifty surged 126.75 points or 0.51 per cent to end at 25,175.40.
Ponmudi R, CEO, Enrich Money, an online trading and wealth tech firm, said:"India’s FTA with the EU, which accounts for 25 per cent of global GDP and 33 per cent of global trade, is a major breakthrough, particularly in the context of the prolonged India-US trade deal.”
Ponmudi further added: "Indian equities continued to trade with a measured and cautious undertone. The finalisation of the India-European Union bilateral trade agreement lent some support to investor sentiment amid a broader risk-off environment triggered by US tariff measures. "However, sustained selling by foreign portfolio investors and muted third-quarter corporate earnings growth capped any meaningful upside in domestic equities.”
From the 30-Sensex firms, Adani Ports, Axis Bank, Tata Steel, Tech Mahindra, NTPC, State Bank of India, UltraTech Cement and Bharat Electronics were among the biggest gainers. Axis Bank jumped over 4 per cent after the firm reported a 4 per cent growth in its December quarter net profit to Rs 7,010.65 crore against Rs 6,742.99 crore in the year-ago period.
In contrast, Mahindra & Mahindra, Kotak Mahindra Bank, Asian Paints, Eternal and ITC were among the laggards.
India and Europe on Tuesday announced the sealing of an ambitious free trade agreement -- billed as "mother of all deals" -- that came against the backdrop of a fractious global environment and trade disruptions largely caused by Washington's policy on tariffs.
