New Delhi, Jan. 27 -- The Indian stock market kicked off the holiday-shortened week on a positive note as investor sentiment appeared to have improved, driven by the finalisation of a free trade agreement between India and the European Union. Hopes that the US may lift tariffs linked to India's Russian oil purchases have also provided a near-term boost.

While metals, tech and banking stocks offered strong support to the key indices, the sell-off in auto stocks limited gains, as concerns grew that competition would likely intensify following the sharp reduction in import taxes on European-made cars.

Consequently, the Nifty 50 settled 0.51% higher at the 25,175 level, while the S&P BSE Sensex closed 0.66% higher at 82,077 points. The broa...