Here is your Daily Wrap from the Financial Markets, where we look at top headlines from the Markets that drew attention across the globe, notably the announcement of India-EU trade deal, along with the performance of Indian Equity Indices for the day- both broader and sector-wise, as well as the institutional trading activity. And we also take quick look at the Market stats alongside the Global Market Indices.
Let us get underway with..
MARKET DAILY WRAP
After early lows in the morning, the indices Nifty and Sensex rose sharply in the afternoon, tracking optimism surrounding the India-European Union trade deal lifting the investor sentiment, further supported by a firm trend in global markets including Japan’s Nikkei 225 and South Korea’s Kospi trading higher. The benchmark indices ended the day higher, recouping previous losses partly in a highly volatile session with late buying helping Nifty close near the day’s high.
Global cues remain mixed amid renewed tariff concerns after US President Donald Trump increased the levies to 25% on South Korea, even as Wall Street extended its rally overnight on optimism around mega-cap earnings.
Finance Flashcards Newsroom
TOP HEADLINES
- India-EU sign ‘mother of all trade deals’
In a bid to deepen ties amid tensions with the US, the European Union and India signed a landmark trade deal on Tuesday, after nearly a decade of on-off talks. Indian Prime Minister Narendra Modi called the pact “historic”. According a report in BBC, this will allow free trade of goods between the bloc of 27 European states and the world’s most populous country, which together make up nearly 25% of global gross domestic product and a market of two billion people. Additionally, the deal will see a number of tariff cuts across a range of goods and services, which bodes well for domestic markets and the consumers.
Significantly, duties on motor vehicles, currently as high as 110%, would be cut to 10% under a quota of 250,000 vehicles. The trade deal comes as both India and the EU contend with economic and geopolitical pressure from the US. As per experts, the deal may help labor-intensive sectors in India including shrimp farming, textiles, jewellery, among others which were hit hard by the US tariffs.
(FYI: The impending announcement of the trade deal was reported in our previous edition (Weekly) of the Market Daily Wrap, with top leaders of the 27-bloc EU among the chief guests at India’s Republic Day celebrations on Monday.)
- Trump raises tariffs on South Korean imports to 25%
The US President Donald Trump announced raising the tariffs on South Korean imports to 25%, after accusing Seoul of ‘not living up’ to the trade deal reached last year. As per BBC, South Korea exported goods worth about $123bn (£90bn) to the US last year, making it the second largest export market after China. Seoul and Washington reached a deal last October, which included a pledge from South Korea to invest $350bn (£256bn) in the US, some of which would go to shipbuilding.
In response to the announcement, shares in Korean carmakers Hyundai and Kai fell upto 6%, yet closing only 1% lower post recovery with the benchmark Kospi index also recovering early losses to end the day 2.7% higher.
EQUITY MARKET RECAP
INDIAN INDICES
GLOBAL MARKETS
INDIAN MARKET WRAP
Indices
Sensex was up 319.78 points or 0.39 percent at 81,857.48, and the Nifty was up 126.75 points or 0.51 percent at 25,175.40. All the broader indices ended in green, and despite brief intraday consolidation the Nifty index maintained buying interest and closed at the day’s high, reflecting strong demand and sustained positive sentiment.
The broader indices performed inline the benchmarks, with Nifty midcap and smallcap indices rising 0.5% each.
Sector and Stock Movement
Except auto, FMCG, media and consumer durables, all other sectoral indices ended in the green with metal up 3%. Bank Nifty was the second-biggest gainer of the day behind metals as several bank stocks drove the index higher, with Axis Bank shares the top gainer, after having reported better than expected results for Q3 FY26.
Biggest Nifty gainers were Adani Enterprises, Axis Bank, JSW Steel, Adani Ports, Grasim Industries, while losers included M&M, Kotak Mahindra Bank, Asian Paints, Bajaj Finserv and Eternal. More than 650 stocks touched 52-week lows including Reliance Power, Syngene International, Poly Medicure, among others.
Institutional Trading Activity
On Tuesday, FII/FPIs net sold Indian equities worth Rs 3068 crore, while DIIs net bought Rs 9000 crore according to exchange data. For the year so far, FIIs have been net sellers of shares worth Rs 40810 crore, while DIIs have net bought shares worth Rs 54821 crore.
That’s all in our today’s edition of Daily Wrap from the Markets. We’ll be back tomorrow..
