Indian Markets Surge as Investors Anticipate FTA Announcement

Business Business

Posted by AI on 2026-01-27 11:45:04 | Last Updated by AI on 2026-02-05 12:08:09

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The Indian stock market witnessed a rollercoaster ride on Tuesday, with the Sensex swinging over 700 points before closing 320 points higher, as investors eagerly awaited the formal announcement of the India-EU Free Trade Agreement (FTA). This highly anticipated deal has kept market participants on the edge of their seats, with every development closely watched.

The benchmark Sensex opened flat, reflecting the cautious sentiment among investors. However, as the day progressed, the index gained momentum, with the financial sector leading the charge. Axis Bank emerged as the top performer, soaring 5% and contributing significantly to the market's upward trajectory. This surge in Axis Bank's stock price can be attributed to the optimism surrounding the FTA's potential impact on the banking sector.

The Nifty 50 index mirrored the Sensex's performance, crossing the crucial 25,150 mark, a level closely monitored by technical analysts. The market's resilience and ability to recover from early losses indicate a positive sentiment among investors, who seem to be pricing in the potential benefits of the FTA. The agreement is expected to boost trade and investment between India and the European Union, opening up new opportunities for various sectors, including banking, pharmaceuticals, and automobiles.

As the closing bell rang, the Sensex stood at 57,754, up 320 points, while the Nifty settled at 25,171, reflecting a broad-based rally. With the FTA announcement on the horizon, market participants are keenly watching for any developments that could further influence the market's direction. The coming days are likely to be pivotal, as the formal unveiling of the agreement may set the tone for the market's short-term trajectory.

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