Investors pinned hopes on India's upcoming budget to deliver economic reforms that could boost market sentiment. However, the recently signed EU-India trade agreement failed to generate the anticipated excitement among traders and financial markets.

The deal, expected to enhance bilateral commerce, instead left many questioning its immediate market impact. Analysts had forecast stronger provisions for technology transfers and reduced tariffs, which could have spurred investor confidence ahead of fiscal announcements.

Market participants are now turning attention to India's fiscal policy announcements due next month. They seek concrete measures on infrastructure spending and corporate tax adjustments that might offset the trade deal's underwhelming reception and drive domestic equity performance.

Economists warn that without substantial budgetary stimulus, India's growth trajectory may struggle against global headwinds. The focus shifts entirely to domestic policy levers rather than international trade diplomacy for near-term market direction.