India-EU trade deal: Vedanta, UPL, SRF, KPR Mill shares among 28 likely gainers. Table

Antique Stock Broking on Wednesday said the India-EU trade deal served as a critical hedge against global trade fragmentation and would help India integrate more deeply into global value chains, support manufacturing, and increase employment. The brokerage said the agreement is also likely to support foreign direct investment and foreign institutional investor inflows over the medium to long term.

Among chemical companies, Antique Stock Broking said PI Industries, Rallis India, SRF Ltd, Sumitomo Chemical India and UPL Ltd are potential beneficiaries. In building materials, Greenlam Industries and Greenpanel Industries are identified as key gainers.

In the industrial segment, the brokerage said ABB India, Apar Industries, GE Vernova T&D, Hitachi Energy and Siemens Energy India are likely beneficiaries of the trade deal.

Among information technology companies, Antique noted Indian IT firms such as HCL Technologies, Coforge Ltd and Tata Consultancy Services generated over 30 per cent of their revenue from the European Union in FY25. In metals and mining, Hindalco Industries Ltd and Vedanta Ltd are highlighted, while Cipla, Dr Reddy’s Laboratories and Torrent Pharmaceuticals areidentified in the pharmaceutical space. Textile exporters such as KPR Mill and Welspun Living are also seen as key beneficiaries.

Antique Stock Broking said the European Union levied average tariffs of about 3.8 per cent on Indian goods. However, it noted that labour-intensive sectors faced import duties of nearly 10 per cent, which were likely to be reduced to zero under the agreement.

As a result, the brokerage said sectors such as textiles, leather, footwear, agriculture and precious stones were clear beneficiaries, as India currently accounted for just about 4 per cent of EU imports in these categories, leaving scope to significantly increase market share in the coming years.

The brokerage also said the EU was India’s second-largest IT spending market, contributing around 16 per cent of total IT revenue. It added that indirect benefits of the India-EU trade deal included reduced compliance barriers and improved access and mobility for Indian professionals, which could help IT companies de-risk their dependence on the US market.

“Lower duties should support higher export volumes into the EU (Dr. Reddy, Torrent Pharma). The EU is also a source for certain specialized APIs, intermediaries, and high-tech drug components—thus leading to lower manufacturing cost,” Antique Stock Broking said.

The brokerage added that the removal of duties on European machinery and chemicals could help lower production costs for Indian manufacturers. It said that given import quotas on automobiles, EU automakers were likely to focus on premium luxury completely built units, limiting the overall impact on the domestic auto sector.

Antique Stock Broking said approximately $33 billion worth of Indian exports would benefit from immediate duty elimination under the trade deal.

For textiles and apparel, tariffs were slashed from 12 per cent to nil, covering readymade garments, cotton yarn and home textiles. In leather and footwear, duties of up to 17 per cent were removed entirely, supporting major manufacturing clusters in Tamil Nadu and Uttar Pradesh.

Gems and jewellery tariffs, previously up to 4 per cent, were eliminated, with Antique noting potential to double trade to $10 billion over the next three years. Tariffs of up to 26 per cent on marine products were reduced to nil, particularly benefiting shrimp and frozen fish exports from coastal states.

In the chemicals sector, the brokerage said duties of up to 12.8 per cent were removed for 97.5 per cent of India’s chemical export basket, including inorganic chemicals and agrochemicals. In mines and minerals, 100 per cent of tariff lines for value-added minerals were set to move to zero duty.

Tariffs of up to 22 per cent on machinery and industrial goods were also set to be eliminated, Antique Stock Broking said.