Mumbai, Maharashtra — January 28 (ANI): Indian stock indices ended higher on Wednesday, supported by investor optimism following the conclusion of the India–European Union Free Trade Agreement.
At the close of trade, the Sensex gained 487.20 points, or 0.60 percent, to settle at 82,344.68, while the Nifty rose 167.35 points, or 0.66 percent, to close at 25,342.75. Sectoral gains were led by media, metal, energy, oil and gas, realty, and PSU banks, while FMCG, consumer durables, and pharmaceutical stocks ended lower. The Indian rupee closed weaker at 91.79 against the U.S. dollar, compared with the previous close of 91.72.
India and the European Union finalized a landmark Free Trade Agreement on Tuesday. Commenting on market performance, Vinod Nair, Head of Research at Geojit Investments Limited, said domestic markets continued to display optimism supported by the India–EU FTA. He noted that broader indices outperformed, driven by strength in metals, financials, and oil and gas stocks, while FMCG shares witnessed profit-booking as investors shifted toward cyclical sectors.
Nair added that global markets traded mixed as investors awaited the U.S. Federal Reserve’s policy decision. While expectations remain that interest rates will stay unchanged, he said market focus is on the Fed Chair’s guidance regarding potential rate cuts later in the year. He also pointed out that rising U.S.–Iran tensions and uncertainty over global tariffs could keep overall sentiment restrained.
Ponmudi R, CEO of Enrich Money, said Indian equity markets closed on a positive note, supported by improving global cues and renewed optimism on the external trade front following the successful conclusion of the India–EU Free Trade Agreement. He said the improved risk environment encouraged bottom-fishing at oversold levels, along with mild short-covering in the derivatives segment.
According to Ponmudi, selective buying was seen in export-oriented and manufacturing stocks, reflecting expectations of stronger external demand and improved trade linkages. He added that the rupee traded within a narrow range against the U.S. dollar, supported by a softer dollar environment but capped by month-end demand and cautious foreign capital flows.
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