New Delhi, Jan. 29 -- The India-EU Free Trade Agreement has set the stage for a meaningful shift in sectoral leadership across Indian equities. It is expected to drive a structural shift in sectoral leadership across Indian equities, covering economies that together account for nearly 25% of global GDP and 33% of global trade. Market participants see the pact as a long-term re-rating trigger rather than a short-term trading catalyst.

According to Elara Securities, the deal comes amid uncertainty around US trade policy and geopolitical realignments, and could act as a partial hedge against external headwinds, though gains will accrue gradually. Exports to the EU already form 17.8% of India's total exports, almost matching the 18.3% share ...