By Admin 
Foreign investors buying: After continuous selling of Indian shares, the mood of foreign investors has changed once again. Investor confidence was strengthened by the Free Trade Deal (FTA) signed between India and the European Union (EU) on Tuesday. The situation is that on Wednesday, January 28, foreign investors sold Indian shares worth only Rs 480 crore. This is the first purchase by foreign investors in the year 2026. According to exchange data, during this period, domestic institutional investors (DIIs) bought shares worth Rs 3361 crore.
India-EU free trade deal has an impact
After the ‘Mother of All Deals’ was signed between India and EU on Tuesday, DIIs bought shares worth Rs 19578 crore and sold shares worth Rs 16218 crore in Wednesday’s trading session. Whereas on the contrary, foreign investors bought shares worth Rs 21045 crore, but sold shares worth a total of Rs 20564 crore.
So far this year, foreign investors have sold Indian shares worth Rs 43288 crore, while domestic investors have bought shares worth net Rs 67182 crore during this period. The stock market also witnessed a rise on Wednesday amid continued expectations regarding the India-European Union Free Trade Agreement and strong signals from global markets. Both benchmark indices Sensex and Nifty maintained their gains. Nifty was above the level of 25,300, while Sensex rose 487 points.
FTA will increase foreign investment
Moody’s Ratings on Wednesday said the India-European Union Free Trade Agreement (FTA) will be positive for India as lower tariffs and better market access are expected to attract foreign investment, support manufacturing and increase export competitiveness, especially in labour-intensive sectors. Under this, 93 percent of Indian exports will get duty-free access in 27 countries included in the European Union. Also, import of luxury cars, wine and some selected food products from EU will become cheaper in India.
According to Moneycontrol report, Gaurav Garg of Lemon Markets Desk said on this, investor sentiment remained strong after the historic free trade agreement between India and European Union was approved. This agreement will create a free trade area for approximately two billion people, which will benefit both sides. That is, the FTA between the group of 27 European countries included in the European Union and the world’s most populous country will cover the market for 2 billion people and 25 percent of the global GDP.
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