Prime Minister Narendra Modi announced that India and the EU had signed a “landmark” free trade deal, describing it as the “mother of all deals”. The pact is significant in size, representing approximately 25% of global GDP and almost a third of global trade.
Top movers
Shares of Axis Bank ended the session nearly 5% higher after the private sector lender reported a 3% year-on-year (year-on-year) increase in standalone net profit for the third quarter of fiscal 2025-26 (Q3FY26).
Shares of Adani group companies including Adani Enterprises, Adani Ports and Adani Green recovered as much as 5.5% after Friday’s sharp sell-off after lawyers representing Indian executives Gautam Adani and his cousin Sagar Adani filed their first filing in a US court this week.
According to a report by Hindustan Times, the filing showed willingness to negotiate to accept the summons after the Indian government twice refused to file it. The development follows a request from the US Securities and Exchange Commission, which had sought permission from a US court to email the subpoena directly to Gautam Adani and Sagar Adani, Reuters reported last week, citing court documents.
On the other hand, Kotak Mahindra Bank fell over 3% after the private sector lender reported a 4% year-on-year (year-on-year) increase in its standalone net profit for the third quarter of the financial year 2025-26 (Q3FY26). Profit rose to Rs 3,446 crore from Rs 3,305 crore in the same quarter a year ago. Shares of India’s top automakers such as Mahindra & Mahindra (M&M), Maruti Suzuki India, Tata Motors and Hyundai fell as much as 5% on Tuesday after the India-EU free trade deal cut tariffs on cars imported from Europe from 110% to 10%. Currently, New Delhi levies a 70% tax on imported passenger cars priced below $40,000, and cars priced above $40,000 are taxed at an effective customs duty of 110%. This move could lead to stiff competition for Indian OEMs.Shares of Asian Paints fell 3% after the company reported a nearly 5% decline in its consolidated net profit for the quarter ended December at Rs 1,060 crore, compared to Rs 1,110 crore in the same period a year ago. Profit after tax (PAT) rose 7% sequentially from Rs 994 crore in Q2FY26.
Global markets
S&P 500 futures rose slightly on Tuesday morning after US stock markets started a busy earnings week on a positive note. Futures tied to the broader market index were last up 0.2%, while Nasdaq 100 futures rose 0.5%. However, Dow Jones Industrial Average futures fell 49 points, or 0.1%, pressured by a decline in UnitedHealth shares. Investors are also waiting for the Federal Reserve’s interest rate decision later this week.
Gold advanced Tuesday, supported by safe-haven demand amid increased geopolitical uncertainty, while silver rose 8% to trade near a record high. Spot gold rose 1.6% to $5,092.70 an ounce as of 0710 GMT, after hitting a record high of $5,110.50 in the previous session. The precious metal also crossed the $5,100 mark for the first time on Monday.
European shares opened broadly higher on Tuesday as investors welcomed the European Union’s historic trade deal with India and positioned themselves ahead of a busy run of corporate earnings.
Indian Prime Minister Narendra Modi announced that India and the EU had signed a “landmark” free trade deal, describing it as the “mother of all deals”. The pact is significant in size, representing approximately 25% of global GDP and almost a third of global trade.
Rough impact
Oil prices fell on Tuesday as investors eyed the resumption of supply from Kazakhstan, although losses were limited by disruptions caused by a massive winter storm that hit crude production and refineries along the US Gulf Coast. Brent crude futures fell 28 cents, or 0.4%, to $65.31 a barrel as of 0900 GMT, while US West Texas Intermediate crude fell 19 cents, or 0.3%, to $60.44 a barrel.
Kazakhstan will resume production at its largest oil field, the country’s energy ministry said on Monday, although industry sources noted production levels remain low.
Rupee vs dollar
The Indian rupee ended 24 paise higher at 91.72 per dollar on Tuesday, compared to Friday’s close of 91.96.
“The short covering in the second half of the capital market session has further raised expectations of more stable capital flows. With the Fed’s policy decision expected late Wednesday, the rupee is likely to closely follow global cues. The near-term range is between 91.35 and 92.15,” said Jateen Trivedi of LKP Securities.
(With input from agencies)
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times.)
#Market #turnaround #Sensex #adds #points #Nifty #India #sign #mother #deals #eyes #Fed