Benchmark indices extend previous day’s gains; Axis Bank, Reliance and NTPC lead, Asian Paints tumbles nearly 6%
By NSB.News
New Delhi: Equity benchmark indices Sensex and Nifty surged in early trade on Wednesday, extending their previous session’s rally amid optimism over the landmark India-European Union Free Trade Agreement (FTA).
The 30-share BSE Sensex jumped 646.49 points to 82,503.97 in initial trade, while the 50-share NSE Nifty climbed 196.7 points to 25,372.10.
Among Sensex constituents, Axis Bank, Reliance Industries, NTPC, Bharat Electronics, ICICI Bank and Bajaj Finance emerged as the major gainers.
However, Asian Paints slipped nearly 6 per cent after the company reported a 4.83 per cent year-on-year decline in consolidated net profit to Rs 1,073.92 crore for the December quarter of FY26. The decline was attributed to exceptional items, including the implementation of the new labour code and impairment losses in a subsidiary.
Maruti, HCL Technologies, Kotak Mahindra Bank and State Bank of India were among the other laggards.
Investor sentiment was buoyed after India and the European Union on Tuesday sealed a landmark free trade agreement—described as the “mother of all deals”—aimed at creating a market of nearly two billion people. Prime Minister Narendra Modi and top EU leadership unveiled a transformative five-year agenda focusing on trade and defence cooperation to strengthen the rules-based global order.
According to officials, the agreement—covering almost a quarter of global GDP—will reduce tariffs on 99 per cent of Indian exports to the EU and cut duties on over 97 per cent of EU exports to India.
Meanwhile, foreign institutional investors (FIIs) offloaded equities worth Rs 3,068.49 crore on Tuesday, while domestic institutional investors (DIIs) provided strong support by purchasing stocks worth Rs 8,999.71 crore, as per exchange data.
In Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite and Hong Kong’s Hang Seng traded higher, while Japan’s Nikkei 225 quoted lower.
Commenting on the trend, VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said FIIs continued their selling spree, while DIIs, flush with funds, aggressively bought fundamentally strong stocks. “After the India-EU trade deal, which is a big long-term positive, investors are now focused on the Union Budget to be presented on February 1,” he said.
On Tuesday, the Sensex had climbed 319.78 points, or 0.39 per cent, to close at 81,857.48, while the Nifty gained 126.75 points, or 0.51 per cent, to settle at 25,175.40.