India-EU trade deal: What does it mean for gold, silver, Indian stock market?

Key Highlights

• On Friday, the Indian benchmark indices witnessed sharp selling pressure during the week, with the Nifty 50 declining more than 2.5% to settle at 25,048, while the BSE Sensex fell nearly 2.4% to close at 81,537.
• The India–European Union free trade agreement (FTA), slated for announcement on January 27, is expected to reduce costs and boost bilateral trade without undermining domestic industry, according to the Global Trade Research Initiative (GTRI), as quoted by the Times of India.
• India–EU merchandise trade exceeded $136 billion in FY2025.
• GTRI noted that tariff cuts under the pact would mainly lower input costs, strengthen value-chain integration and lift trade volumes—typical FTA benefits that support producers and consumers on both sides.
• " The two are not rivals but partners operating on different rungs of the value chain," with India focused on labour-intensive and downstream production, while the EU supplies capital goods, advanced technology and industrial inputs.