India-EU free trade agreement: Experts recommend these 40 stocks to buy today for long term

India-EU free trade agreement: In a historic development, India and the European Union (EU) signed a free trade agreement (FTA) on Tuesday in New Delhi. Indian Prime Minister Narendra Modi, EU Commission President Ursula von der Leyen, and Antonio Costa. This India-EU free trade deal is expected to eliminate $2 billion in tariffs for both sides in one year. The second- and fourth-largest economies in the world have also agreed to enhance their defence partnership, following nearly two decades of intermittent negotiations.

According to stock market experts, India’s export-oriented companies in the textile, gems and jewellery, auto, pharma, IT, and defence sectors are expected to benefit most from this India-EU FTA. They listed out 40 stocks to buy today from these beneficiary companies.

Highlighting the benefit of the India-EU free trade agreement, Ross Maxwell, Global Strategy Operations Lead, VT Markets, said, “The India-EU Free Trade Agreement has the potential to significantly bolster India’s export and import competitiveness and enhance investor confidence over the medium term. By reducing tariffs and streamlining regulatory barriers, Indian exporters in sectors such as pharmaceuticals, textiles, automotive components, and information technology services stand to gain improved access to one of the world’s largest consumer markets.”

India-EU trade agreement: Segments to benefit

Speaking on what this India-EU free trade agreement means for the Indian stock market, Avinash Gorakshkar, a SEBI-registered fundamental stock analyst, said, “The India-EU free trade deal is expected to boost the sluggish economies of both sides as both economies have been hurt badly due to the recent uncertainties caused by Trump’s tariffs. As both sides have accepted that it would help them eliminate nearly $2 billion in tariffs for both sides in one year, the India-EU trade deal is expected to boost exports of both India and the EU, leading to strong quarterly numbers for the Indian companies.”

India-EU free trade agreement: 40 stocks to buy today

On stocks to buy today after the India-EU FTA, Sugandha Sachdeva, Founder of SS WealthStreet, said, “Our preferred stock picks from this theme are Samvardhana Motherson International, Apex Frozen Foods, Infosys, and Tata Consultancy Services, Cipla, Privi Speciality Chemicals, and PCBL. These companies are well-positioned to capitalise on improved market access to the EU, benefiting from stronger export demand, better pricing power, and diversification away from traditional markets like the US and Asia. Tariff rationalisation could directly translate into higher volumes and improved margins.”

However, Sugandha Sachdeva of SS WealthStreet also added that the deal throws up select near-term challenges. Lower import duties could pose a headwind for domestic auto manufacturers as European vehicles become more competitive in the Indian market. Additionally, some liquor companies may face short-term pressure due to increased competition from European wines following excise and tariff adjustments.

Mahesh M Ojha, AVP — Research at KC Securities, said, “India’s export-oriented companies having greater exposure in the EU member countries are expected to benefit most from this ‘Mother of All Deals.’

Mahesh M Ojha of KC Securities listed 42 stocks to buy after the India-EU trade agreement. However, he maintained that all these recommended stocks are for the long-term time horizon, as it would take time for the India-EU trade deal to showcase its benefits for the beneficiary companies of both sides.

1] Apex Frozen Foods: 30%

2] Avanti Feeds Ltd: 17.2%

4] Aeroflex Industries Ltd: 23%

5] Rishabh Instruments Ltd: 68.1%

6] AXISCADES Technologies Ltd: 37.0%

7] Dynamatic Technologies Ltd: 55.83%

8] RACL Geartech Ltd: 58.09%

10] Tata Motors Ltd: 35 to 40%

11] Precision Camshafts Ltd: 23.14%

12] Sona BLW Precision Forgings Ltd: 22%

13] Samvardhana Motherson International Ltd: 31.0%

14] Endurance Technologies Ltd: 23%

15] Anthem Biosciences Ltd: 55%

16] Acutaas Chemicals Ltd: 38.7%

17] Supriya Lifescience Ltd: 41%

18] Rain Industries Ltd: 40%

20] Marksans Pharma Ltd: 39%

21] Indoco Remedies Ltd: 49%

22] Divis Laboratories Ltd: 33%

23] Gland Pharma Ltd: 20%

24] Emcure Pharmaceuticals Ltd: 20%

25] Aurobindo Pharma Ltd: 29.7%

26] Solara Active Pharma Sciences Ltd: 20.24%

27] Aimtron Electronics Ltd: 23.61%

28] Blue Jet Healthcare Ltd: 79%

27] M M Forgings Ltd: 21.4%

28] PTC Industries Ltd: 54.06%

29] K P R Mill Ltd: 24.32%

32] Gokaldas Exports Ltd: 30 to 35%

33] Welspun Living Ltd: 20 to 22%

34] Vardhman Textiles Ltd: 22 to 25%

40] Privi Speciality Chemicals.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.