The stock market is seeing the impact of the free trade agreement between India and the European Union. The deal is also expected to benefit the Indian gems and jewellery industry...

Zero tariffs on gems and jewellery, EU-India trade deal boosts shares of these companies; learn about the market impact.

India EU Free Trade Agreement: The stock market is seeing the impact of the free trade agreement between India and the European Union. Following this historic agreement, the market witnessed significant activity on Tuesday, January 27th, especially among export-related companies. Shares of several textile exporting companies registered gains of up to 12 percent.

The completion of this long-delayed deal has boosted investor confidence, directly benefiting select stocks. It is also expected to benefit the Indian gems and jewellery industry. Let's explore which stocks are rising and how the jewellery sector can benefit. 

The jewellery sector will get a big benefit in exports

Indian gems and jewellery remain in demand worldwide. However, exporters were greatly disappointed by the US government's decision to impose a 50 percent tariff. Businesses were suffering significant losses. This deal between India and the European Union will provide the Indian gems and jewellery sector with a new opportunity to expand into the European market. The 10 percent tariff on gems and jewelry will be reduced to zero.

Labor-intensive industries are expected to benefit the most once this agreement is implemented. Tariffs of up to 10% on approximately $33 billion worth of exports from sectors such as textiles, ready-made garments, leather, footwear, marine products, handicrafts, engineering goods, and automobiles will be eliminated. This will further strengthen these sectors' competitiveness in the global market.

These stocks saw a rise.

Shares of some textile and food-related companies saw gains on Tuesday. Shares of Gokaldas Exports rose more than 5 percent to reach ₹585 on the BSE. KPR Mills also saw buying, rising nearly 3 percent.

Additionally, Welspun Living shares rose 3.5 percent, reaching an intraday high of ₹125.25. Vardhman Textiles shares jumped 5 percent to ₹422, while Trident shares gained 4 percent. During the trading day, the shares hit an intraday high of ₹26.42. 

In the food sector, Avanti Feeds shares also saw gains of about 3 percent. Apex Frozen Foods saw the biggest gains, rising 12 percent.