The Indian stock market kicked off the holiday-shortened week on a positive note as investor sentiment appeared to have improved, driven by the finalisation of a free trade agreement between India and the European Union. Hopes that the US may lift tariffs linked to India’s Russian oil purchases have also provided a near-term boost.
While metals, tech and banking stocks offered strong support to the key indices, the sell-off in auto stocks limited gains, as concerns grew that competition would likely intensify following the sharp reduction in import taxes on European-made cars.
Consequently, the Nifty 50 settled 0.51% higher at the 25,175 level, while the S&P BSE Sensex closed 0.66% higher at 82,077 points. The broader markets also mirrored the positive trend, with the Nifty Midcap 100 and Nifty Smallcap 100 indices each surging over 0.40%.
Sector-wise, Nifty Metal emerged as the top performer, rallying 3.07%, followed by Nifty PSU Bank, Nifty IT, Nifty Oil and Gas, and Nifty Realty, which surged between 0.46% and 1.8%.
On the flip side, Nifty Auto stood as the worst performer, falling 0.93%. Nifty FMCG and Nifty Consumer Durables also shed 0.60% each.
India and the EU have finalised a landmark free trade agreement, which the European Commission president, Ursula von der Leyen, hailed as the “mother of all deals”
Today, India concluded the biggest free trade agreement (FTA) in its history with the European Union, Prime Minister Narendra Modi said after holding summit talks with the 27-nation bloc’s top leaders, Ursula von der Leyen and Antonio Costa.
India will get “unprecedented” market access at concessional duties for over 99 per cent of its exports by value in the European Union (EU) market, providing a boost to domestic labour-intensive sectors, Commerce and Industry Minister Piyush Goyal said.
The Indian government is slashing tariffs on cars to 10% over five years from as high as 110%, with a quota of 250,000 vehicles a year, Reuters reported, citing an EU statement.
Select stocks rise sharply after strong earnings beat
Home First Finance led the gainers’ list today with a 12.5% rally following the release of its December quarter performance, while Karur Vysya Bank shares gained 10.2%, also in reaction to the Q3 numbers.
Reacting to the December quarter numbers, Axis Bank shares settled 4.6% higher at ₹1,333.20 apiece.
Aegis Vopak Terminal, Jindal Stainless, Sona BLW Precision, Garden Reach Shipbuilders, KPR Mill, Data Patterns, India Cements, MCX, Asahi India Glass, Craftsman Automation, Triveni Engineering, and Adani Enterprises closed higher between 5% and 9.5%.
Hindustan Copper shares saw renewed buying after a two-day sell-off, surging 5% to ₹563.60 apiece, while other metal stocks such as NMDC Steel, JSW Steel, SAIL, Hindustan Zinc, NALCO, Vedanta, and APL Apollo Tubes also rallied up to 4.8%.
Overall, 50 stocks from the Nifty 500 pack ended the session with gains of over 3%.
OneSource Specialty Pharma, SBFC Finance lead losers
In terms of top laggards, OneSource Specialty Pharma saw a sharp 20% crash in its shares, sliding to a new 52-week low of ₹1,151.30 apiece as the sell-off in the stock deepened following the December quarter results.
Today marked the seventh straight day of losses for the stock, taking the cumulative decline to 35%.
SBFC Finance and Syngene International were other top laggards in the pack, with each crashing 11.7% and 10%, respectively.
JSW Energy shares extended their losing streak to a second session, dropping by another 8% to ₹440 apiece, the lowest level since May 2025.
Auto majors including Mahindra & Mahindra, Hyundai Motor India, and Force Motors fell by 4.2%, 4%, and 3%, respectively.
Other stocks such as Gravita India, Godrej Consumer Products, Nuvama Wealth Management, Reliance Infrastructure, Poly Medicure, Valor Estate, Mahanagar Gas, and Zensar Technologies also fell between 4% and 6%.
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