India-E.U. Trade Deal Sparks Rally in Textile, Pharma, Chemical Stocks

• An impending India-E.U. trade deal is generating optimism in the domestic equity market, leading to a rally in key sector stocks.
• The Free Trade Agreement (FTA) is expected to boost India's exports to the E.U. by approximately $50 billion, primarily through medium-tech manufacturing.
• Key sectors like textiles, pharmaceuticals, and chemicals are poised to benefit significantly from reduced tariffs and improved regulatory cooperation.
• In textiles, India could gain substantial market share in knitwear, outerwear, and trousers due to tariff parity with competitors like Vietnam and Bangladesh.
• Pharmaceuticals anticipate faster drug approvals and reduced friction for generics, while chemicals foresee increased export volumes and improved EBITDA margins for Indian manufacturers.

Why It Matters: The India-E.U. trade deal is set to significantly boost Indian exports and key sector stocks.