BENGALURU, Jan 28 (Reuters): India's equity benchmarks rose on Wednesday, extending gains from the previous day's landmark trade deal with the European Union, while capital expenditure-linked stocks jumped ahead of the federal budget.
The Nifty 50 rose 0.66 per cent to 25,342.75, while the BSE Sensex added 0.6 per cent to 82,344.68. The benchmark indexes have risen about 1 per cent in two sessions. The EU trade deal signed on Tuesday scrapped all tariffs on more than 90 per cent of Indian goods.
"This deal opens a high-value consumer market for Indian exporters while positioning India as Europe's most reliable long-term growth partner.... (It also) reshapes capital flows (and) strengthens investor confidence," said Amit Jain, co-founder of Ashika Global Family Office Services.
Thirteen of the 16 major sectors logged gains. Energy and metal stocks led the rise with a 4.2 per cent and 2.3 per cent gain, respectively, on higher crude oil and base metal prices.
Broader mid-caps and small-caps rose 1.7 per cent and 2.3 per cent, respectively.
"Sectors that are expected to be in focus in the budget, like railways and defence, have done well today. Apart from that, buying is seen in mid-cap and small-cap companies that have reported strong earnings for the December quarter," said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities.
Defence index soared 7 per cent, while public sector enterprises and infrastructure stocks rose 4.6 per cent and 1.1 per cent, respectively.
Investors await the US Federal Reserve's policy decision later in the day, where it is widely expected to keep rates unchanged.
Asian Paints dropped 4.2 per cent on subdued volume growth in the December quarter, while Mahindra Logistics and Motilal Oswal Financial Services jumped 15 per cent and 7.5 per cent, respectively, on upbeat earnings.
Indian shares rise on EU deal; defence, infra stocks gain
FE Team | Published: January 29, 2026 00:31:47
Indian shares rise on EU deal; defence, infra stocks gain
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