Indian equity benchmarks made an optimistic start on Tuesday tracking mostly positive cues from other Asian counterparts amid optimism over a potential resolution between the United States and Iran ahead of the ceasefire deadline. As per a private report, Iran said that it would send a negotiating team to Pakistan for the second round of peace talks with the U.S. Fall in crude oil prices in early session, also supported domestic sentiments. Sensex and Nifty were trading higher with gains of around half a percent each in early deals on account of healthy buying in most of the sector stocks led by Realty, Telecom and Capital Goods.
Some support came as Commerce and Industry Minister Piyush Goyal said a team of Indian officials, currently in Washington for talks on the first phase of the bilateral trade agreement, will discuss aspects related to preferential market access for domestic goods in the US. Also, India and Korea have discussed revamping the existing free trade agreement between the two countries to boost economic ties. Moreover, India and the Maldives have decided to establish a formal joint business council to boost trade and investment and foster meaningful partnerships.
The BSE Sensex is currently trading at 78977.47, up by 457.17 points or 0.58% after trading in a range of 78522.96 and 78981.02. There were 24 stocks advancing against 6 stocks declining on the index.
The top gaining sectoral indices on the BSE were Realty up by 2.40%, Telecom up by 1.19%, Capital Goods up by 1.03%, Bankex up by 0.98% and Power up by 0.97%, while IT down by 0.05% was the sole losing index on BSE.
The top gainers on the Sensex were Axis Bank up by 1.28%, Eternal up by 1.16%, Asian Paints up by 1.04%, Adani Ports & SEZ up by 1.01% and Interglobe Aviation up by 0.99%. On the flip side, Infosys down by 0.47%, Tech Mahindra down by 0.43%, Ultratech Cement down by 0.39%, HCL Technologies down by 0.20% and Reliance Industries down by 0.18% were the top losers.
Meanwhile, NITI Aayog in its quarterly ‘Trade Watch Oct-Dec (Q3) FY 2025-26’ report has said that the geopolitical tensions in West Asia pose risks to India’s trade and macroeconomic stability by widening the current account deficit (CAD), exerting pressure on the exchange rate. It further said that geopolitical instability in West Asia has slowed the India-Gulf Cooperation Council (GCC) Free Trade Agreement (FTA), affecting trade diversification and market access. The war in West Asia broke out on February 28 when the US and Israel launched strikes on Iran, and the latter retaliated.
NITI Aayog Vice Chairman Suman Bery said ‘Let us be clear that FTAs are not a one-way street, nor should they be, which is to say that in the way that we are seeing them as a tool for market access, others are seeing it as a tool for market access too.’ He highlighted that India’s merchandise trade has been resilient in tough environment, and despite many of the apprehensions services trade has also been particularly strong in a very confusing year 2025. He noted that for trade economists, imports matter much more than exports. He emphasised ‘it is imports that force you to be competitive, so we should welcome the imports as much as we welcome the market access’. He also said that over the last 20 years, India has grown at an average of 6 per cent, underscoring its macroeconomic stability.
The report suggested that India’s gems and jewellery sector should shift from mid-value to high-value exports; promote design-led manufacturing, cluster R&D, and GI-branded products targeting lightweight, fashion, and men’s jewellery. It also pitched for expanding financial access and reduce cost of capital – enable collateral-free lending, credit guarantees, interest subvention, export factoring, and supply chain finance to ease liquidity and scale MSMEs. It called for improving ease of doing business and data systems - simplify customs/DGFT procedures, streamline re-import/export processes, and create separate G&J datasets for evidence-based policy and monitoring.
India’s total merchandise and services trade grew steadily during April-December FY’26, rising by about 5.3% year-on-year to $1.37 trillion. FTA partners have emerged as a key driver of India’s trade integration in value chains, with their share in total trade increasing, reflecting deeper economic linkages and expanding market access under trade agreements. According to the report, India remains a key global player in the gems and jewellery sector (HS 71), particularly in worked diamonds. India’s gems and jewellery trade (including raw gold) is highly concentrated. The US, the UAE and Hong Kong account for about 73% of exports, while the UAE, Switzerland and Hong Kong supply over 60% of imports.
The CNX Nifty is currently trading at 24466.60, up by 101.75 points or 0.42% after trading in a range of 24354.90 and 24486.00. There were 38 stocks advancing against 12 stocks declining on the index.
The top gainers on Nifty were Nestle up by 1.73%, Eternal up by 1.28%, Axis Bank up by 1.23%, Asian Paints up by 1.10% and Interglobe Aviation up by 1.06%. On the flip side, SBI Life Insurance down by 3.19%, HDFC Life Insurance down by 0.84%, Dr. Reddy's Lab down by 0.64%, JIO Financial Services down by 0.50% and Infosys down by 0.48% were the top losers.
Asian markets were trading mostly in green; Nikkei 225 surged 737.11 points or 1.25% to 59,562.00, Taiwan Weighted jumped 717.41 points or 1.94% to 37,676.21, KOSPI rose 141.01 points or 2.27% to 6,360.10, Hang Seng advanced 95.93 points or 0.36% to 26,457.00 and Straits Times added 10.42 points or 0.21% to 5,014.49. On the other hand, Jakarta Composite fell 44.73 points or 0.59% to 7,549.38 and Shanghai Composite was down by 9.74 points or 0.24% to 4,072.39.
