The Indian share markets managed to remain positive ahead of Budget 2026 and closed trading on Tuesday in green. The BSE Sensex ended the day above 81,850, rallying more than 300 points, while the NSE Nifty50 settled for the session around 25,175, jumping nearly 130 points.
Investors were also tracking geopolitical and trade developments, as top leaders of India and the European Union announced the conclusion of negotiations for a landmark trade agreement, finalise a strategic defence pact and unveil a broader roadmap to navigate global trade disruptions and geopolitical turbulence.
On the 30-share Sensex, Axis Bank, Adani Ports, Tech M, Tata Steel, and NTPC settled among the gainers. Meanwhile, M&M, Asian Paints, Kotak Bank, Eternal, and Maruti ended the day in red.
Broader Markets And Trading Sentiment
In the broader markets, the Nifty Bank index rallied 1.25 per cent. Sectorally, the PSU Bank index soared 1.76 per cent, while the Media index took a hit of 1.44 per cent.
Both benchmarks recovered from early losses to trade in positive territory on Tuesday morning, supported by firm global cues and buying interest in select blue-chip banking stocks.
In early trade, the Sensex slipped 417.68 points to 81,120.02, while the Nifty declined 111.10 points to 24,937.55. However, both indices soon staged a sharp rebound, moving into the green as buying gathered pace.
Market sentiment was aided by positive cues from overseas markets. Asian equities were trading higher, with South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng all in positive territory. US markets had also ended Monday’s session on a firm note.
India-EU Trade Deal Lifts Sentiment
Investor mood received a boost from a major geopolitical development during the day. India and the European Union announced the conclusion of negotiations for an ambitious free trade agreement, described by Prime Minister Narendra Modi as the biggest FTA in India’s history.
After summit talks with European Commission President Ursula von der Leyen and European Council President Antonio Costa, Modi said the agreement would provide a strong framework to deepen economic ties with the 27-nation bloc at a time of rising global trade tensions.
Market participants said the finalisation of the India–EU bilateral trade pact offered some support to sentiment, even as a broader risk-off environment persisted due to concerns over US tariff measures and global trade disruptions.
Institutional flows
On the institutional front, Foreign Institutional Investors (FIIs) were net sellers on Friday, offloading equities worth Rs 4,113.38 crore, according to exchange data. Domestic Institutional Investors (DIIs), however, remained net buyers, purchasing shares worth Rs 4,102.56 crore. Equity markets were closed on Monday on account of Republic Day.
Analysts, however, cautioned that sustained selling by foreign portfolio investors and muted third-quarter corporate earnings growth continued to limit any sharp upside in domestic equities.
“Indian equities are trading with a measured and cautious undertone. The India–EU trade agreement has lent some support, but persistent FII selling and subdued earnings growth are capping meaningful gains,” said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm.
On the institutional front, Foreign Institutional Investors (FIIs) were net sellers on Friday, offloading equities worth Rs 4,113.38 crore, according to exchange data. Domestic Institutional Investors (DIIs), however, remained net buyers, purchasing shares worth Rs 4,102.56 crore.
Equity markets had remained closed on Monday on account of Republic Day.
Global Markets And Crude Prices
Overseas cues were largely supportive. In Asia, South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng all ended higher. European markets were trading on a mixed note, while US equities had closed higher in the previous session.
In the commodities market, Brent crude, the global oil benchmark, slipped 0.15 per cent to $65.49 per barrel.