Mumbai, Jan 27 (NationPress) After a day filled with fluctuations, India’s key stock market indices closed on a positive note on Tuesday, buoyed by enhanced investor sentiment linked to the recent announcement of a trade agreement between India and the European Union.

By the end of the trading day, the Nifty surged by 0.51 percent, or 126.75 points, reaching 25,175.40. Meanwhile, the Sensex also saw gains, climbing 319.78 points, or 0.39 percent, to finish at 81,857.48.

“A robust breakout above 25,400 is essential to foster a stronger bullish trend, whereas a significant drop below 25,000 could trigger increased selling, targeting the 24,900–24,600 range,” remarked an expert.

“In the absence of a clear directional cue, the index is expected to stay within the 24,900–25,200 consolidation zone,” the expert added.

Under the terms of this agreement, EU goods exports to India are projected to double by 2032, with tariffs on nearly 96.6 percent of EU goods destined for India being eliminated or reduced.

In return, the European Union will decrease or abolish tariffs on about 99.5 percent of goods imported from India, enhancing trade opportunities for both parties.

Despite the overall favorable close, several major stocks negatively impacted the market.

Shares of Mahindra & Mahindra, Asian Paints, Kotak Mahindra Bank, Eternal, ITC, and Maruti Suzuki India experienced declines, with some plummeting by as much as 4 percent.

Conversely, there was notable buying interest in stocks such as Axis Bank, Adani Ports, NTPC, Tech Mahindra, Tata Steel, and State Bank of India, which rose by up to 5 percent, providing support to the indices.

The broader markets also showcased positive sentiment. The Nifty Midcap 100 index closed 0.59 percent higher, while the Nifty Smallcap 100 recorded a gain of 0.41 percent by the session's conclusion.

Among sectoral indices, the metal sector stood out, with the Nifty Metal index soaring 3 percent.

In contrast, the Nifty Media index fell by 1.4 percent, and the Nifty Auto index concluded the day 0.9 percent lower.

Analysts noted that the markets managed to finish positively as investors responded to the long-term trade advantages anticipated from the India-EU deal, despite stock-specific sell-offs and sectoral weaknesses contributing to volatility during the session.

“In the short term, investors are keenly awaiting the US FED’s impending interest rate announcement and the Union Budget for guidance on future trends,” an analyst concluded.