Mumbai (Maharashtra) [India], January 28 : Indian stock indices rose on Wednesday, driven by optimism over the India-EU Free Trade Agreement.
At the time of closing, Sensex was up 487.20 points or 0.60 per cent at 82,344.68. Nifty was up 167.35 points or 0.66 per cent at 25,342.75.
The sectors which gained included media, metal, energy, oil and gas, realty, PSU Bank among others while FMCG, Consumer Durables, pharma ended lower.
Indian rupee ended lower at 91.79 per dollar versus previous close of 91.72.
India and the European Union finalised a historic Free Trade Agreement on Tuesday.
Vinod Nair, Head of Research, Geojit Investments Limited said, "Domestic markets displayed continued optimism, supported by the India-EU FTA. Broader indices outperformed, driven by strength in Metals, Financials, and Oil & Gas, while FMCG stocks saw profit-booking amid investor shift toward cyclical sectors. Global markets traded mixed as investors awaited the U.S. Fed's policy decision."
"Although the broad expectation is that rates are expected to stay unchanged, the focus is on the Fed Chair's guidance on possible rate cuts later this year. At the same time, rising U.S.-Iran tensions and uncertainty over global tariffs are expected to keep overall sentiment restrained," he added.
Ponmudi R, CEO of Enrich Money, said, "Indian equity markets closed the session on a positive note, supported by improving global cues and renewed optimism on the external trade front following the successful conclusion of the Free Trade Agreement between India and the European Union. The improved risk backdrop facilitated bottom-fishing at oversold levels, accompanied by mild short-covering in the derivatives segment."
"Selective buying was evident in export-oriented and manufacturing stocks, reflecting expectations of stronger external demand and improved trade linkages. The rupee traded within a narrow range against the U.S. dollar, drawing support from a softer dollar environment but remaining capped by month-end demand and cautious foreign flows," Ponmudi added.