Indian benchmarks rise on EU trade deal and budget hopes
Indian shares rose Wednesday following a landmark trade deal with the EU. Defence and infrastructure stocks gained as investors look ahead to the new budget.
Insights:
Equity benchmarks in India 
IN rose today after the European Union 
EU signed a trade deal that scrapped tariffs on more than 90% of goods from India IN. The agreement, finalized immediately prior to the current market session on January 28, 2026, is expected to open a high-value consumer market for exporters from India IN. Market observers described the deal as a significant development that is already reshaping capital flows and strengthening investor confidence across the region.
IN rose today after the European Union EU signed a trade deal that scrapped tariffs on more than 90% of goods from India IN. The agreement, finalized immediately prior to the current market session on January 28, 2026, is expected to open a high-value consumer market for exporters from India IN. Market observers described the deal as a significant development that is already reshaping capital flows and strengthening investor confidence across the region.The positive momentum was reflected in the performance of the Nifty 50 and the BSE Sensex. In addition to the trade news, investors were positioning themselves ahead of the impending federal budget in India IN. This anticipation led to a jump in capital-expenditure–linked stocks, as the budget focus on capex is driving sector-specific market moves. These moves affected various sectoral indices, including the defence sector/index, infrastructure sector, energy sector, and metal sector.
IN. This anticipation led to a jump in capital-expenditure–linked stocks, as the budget focus on capex is driving sector-specific market moves. These moves affected various sectoral indices, including the defence sector/index, infrastructure sector, energy sector, and metal sector.
