Indian equity benchmarks continue to gain on EU trade deal

India's equity benchmarks rose on Wednesday, adding to gains made in the previous session following a landmark deal between the European Union and India that raised "hopes" of a boost to the economy.

As of 9:48 a.m. IST, the Nifty 50 was up 0.44% at?25289.10 and the BSE Sensex, meanwhile, was up 0.46%, at 82225.69.

The benchmark 50-stock index rose by 0.5% on February 2, as a deal reached with the EU eliminated all tariffs for 90% of Indian products.

The India-EU Free Trade Agreement marks a transformative shift for India's export sector, and could result in a rise of bilateral trade from $136.5 Billion to $250 Billion by 2031, said Rajeev?Sharan, Head of Criteria of Model Development and Research at Brickwork Ratings.

Sharan stated that the deal provides foreign investors with long-term structural assurance on Indian markets.

After a record $19 billion inflow in 2025, FPIs sold Indian shares in January worth $4.1 billion.

Ten of the 16 major sectors saw gains. High weighted financials gained 1%, while energy stocks rose 2.5%.

HDFC Bank, ICICI Bank, and Reliance Industries all rose by about 1.5%.

The small-caps and the mid-caps, on a broader scale, both advanced by 1% and 0.5%.

The broadest MSCI index of Asia Pacific stocks, excluding Japan, rose 1.3% in advance of the U.S. Federal Reserve policy announcement later that day. Meanwhile the dollar fell to its lowest level in four years.

ONGC's stock rose 6.3% following a pact signed with Samsung Heavy Industries for the construction of?very large ethane carrier. Upstream oil companies also benefited from the higher oil prices due to U.S. supply concerns.

Oil India jumped 8%.

ABB India's shares rose 3.6% following Titagarh Rail's order for?equipment to be used in trainsets. Titagarh shares gained 2%.

Motilal oswal grew by?6.3%, while Mahindra Logistics soared by 11.5% following the release of positive results for the December quarter.

Petronet LNG increased by 3.4% following the execution of?pacts for sale regasified LNG with ONGC Mahanagar Gas.

Asian Paints shares fell 5.4% against the trend after falling 3% the previous day following a shock drop in profit for the December quarter.

(source: Reuters)