India-EU FTA Optimism Lifts Nifty 50 Amid Global Uncertainty

The benchmark Nifty 50 index showed strength in midday trade, climbing into positive territory after a flat opening. The anticipated India-EU Free Trade Agreement, expected to eliminate tariffs on nearly 90% of traded goods, acted as the primary sentiment booster for the domestic economy. Buying interest in select heavyweights and strong corporate earnings further supported the recovery.  

Key highlights  

• India-EU Free Trade Agreement likely to be finalized today, with duty cuts on autos and textiles.  
• Nifty 50 traded 0.2% higher after reversing early sluggishness.  
• Metal and PSU Bank stocks led the recovery, while Auto and FMCG sectors lagged.  
• Domestic liquor stocks faced volatility on expectations of lower duties on European wines and spirits.  
• Tata Consumer Products reported strong Q3 results with net profit rising over 36 percent.  
• Raymond also posted positive earnings, adding stock-specific momentum.  
• Global sentiment remained mixed as US tariff threats on South Korea and Canada weighed on Asian markets.  

Analysts note that while global volatility persists, optimism around the India-EU FTA and robust earnings from select companies are providing domestic markets with resilience. Investors remain watchful of the US Federal Reserve’s upcoming policy meeting, which could influence global risk appetite.  

Sources: LiveMint, The Economic Times, 5paisa