Benchmark stock market indices ended higher on Wednesday, extending gains for the second straight session, as investor mood remained positive after the India–European Union trade deal and ahead of the upcoming Budget session.
Buying was seen across most sectors, especially in stocks linked to capital spending.
The Nifty 50 closed 0.66% higher at 25,342.75, while the BSE Sensex gained 0.6% to end at 82,344.68. With this rise, both benchmark indices have added close to 1% over the last two trading sessions.
Market sentiment stayed firm after India and the European Union signed a major trade deal on Tuesday. Under the agreement, all tariffs on more than 90% of Indian goods exported to the EU have been removed. Investors believe this move could help Indian exporters and support long-term growth.
Sector-wise, 13 out of 16 major indices closed in the green. Energy stocks led the rally, with the energy index rising 4.2%. Metal stocks followed closely, gaining 2.3%, supported by higher crude oil and base metal prices in global markets.
The broader market also showed strong performance. Mid-cap stocks rose 1.7%, while small-cap stocks climbed 2.3%. This showed that buying interest was spread across large, mid, and small companies.
Vinod Nair, Head of Research at Geojit Investments Limited, said that 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.
Among other sectoral movers, the defence index saw a sharp jump of 7%. Public sector enterprise stocks rose 4.6%, while infrastructure stocks ended 1.1% higher. These sectors benefited from expectations of higher government spending in the coming months.
Investors are now waiting for the US Federal Reserve’s policy decision later in the day. The central bank is widely expected to keep interest rates unchanged, but markets will closely track any signals on future rate cuts.
Overall, the market closed on a positive note, supported by the India–EU trade deal, pre-Budget optimism, and broad-based buying across sectors.
