Indian equities closed firmly higher on Wednesday, extending the bounce from the over three-month low from earlier in the week on optimism over India's trade deal with the EU and higher government spending ahead of the government's new budget announcement. The S&P/BSE Sensex rose 0.6% to 82,345 and the NSE Nifty 50 advanced 0.7% to 25,340. Yesterday, PM Narendra Modi announced the India and that India struck a trade deal with the EU that will have Brussels cut tariffs on 99.5% of goods imported from India over seven years. Defense and companies with exposure to domestic infrastructure through government contracts booked sharp gains ahead of the FY27 budget to be presented on Friday, with Reliance Industries adding 1.3% and Power Grid adding 1.7%, while UltraTech Cement rose 1.5%. In the meantime, Asian Paints fell 4.2% after posting subdued volume growth in the December quarter.