Mumbai, Jan 27 (PTI) Equity benchmark indices Sensex and Nifty ended higher in highly volatile trade on Tuesday, buoyed by heavy buying in bank and metal stocks, a firm trend in global markets and optimism over India-EU FTA.

The 30-share BSE Sensex climbed 319.78 points, or 0.39 per cent, to settle at 81,857.48. During the day, it hit a high of 82,084.92 and a low of 81,088.59.

The 50-share NSE Nifty surged 126.75 points or 0.51 per cent to end at 25,175.40.

From the 30-Sensex firms, Adani Ports, Axis Bank, Tata Steel, Tech Mahindra, NTPC, State Bank of India, UltraTech Cement and Bharat Electronics were among the biggest gainers.

Axis Bank jumped over 4 per cent after the firm reported a 4 per cent growth in its December quarter net profit to Rs 7,010.65 crore against Rs 6,742.99 crore in the year-ago period.

In contrast, Mahindra & Mahindra, Kotak Mahindra Bank, Asian Paints, Eternal and ITC were among the laggards.

India and Europe on Tuesday announced the sealing of an ambitious free trade agreement -- billed as "mother of all deals" -- that came against the backdrop of a fractious global environment and trade disruptions largely caused by Washington's policy on tariffs.

Today, India has concluded the biggest free trade agreement (FTA) in its history with the European Union, Prime Minister Narendra Modi said after holding summit talks with the 27-nation bloc's top leaders, Ursula von der Leyen and Antonio Costa.

"Indian equities continued to trade with a measured and cautious undertone. The finalisation of the India-European Union bilateral trade agreement lent some support to investor sentiment amid a broader risk-off environment triggered by US tariff measures.

"However, sustained selling by foreign portfolio investors and muted third-quarter corporate earnings growth capped any meaningful upside in domestic equities," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Foreign institutional investors offloaded equities worth Rs 4,113.38 crore on Friday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 4,102.56 crore, according to exchange data.

Equity markets were closed on Monday for Republic Day.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index ended higher.

Markets in Europe were trading on a mixed note.

US markets ended higher on Monday.

Brent crude, the global oil benchmark, dipped 0.15 per cent to USD 65.49 per barrel.

On Friday, the Sensex tumbled 769.67 points or 0.94 per cent to close at 81,537.70. The Nifty dived 241.25 points or 0.95 per cent to settle at 25,048.65. PTI SUM SUM BAL BAL

Stock markets rose on bank and metal buying as optimism over the India-EU free trade agreement lifted investor sentiment. Equity benchmarks rose on buying in banks and metals and optimism over the India-EU free trade agreement, with gains led by major banks and metals and supported by a reported quarterly profit increase at a large private bank. The India-EU FTA boosted investor sentiment but net foreign portfolio selling, muted third-quarter earnings, global tariff-driven risk-off factors, and recent sharp prior-session declines capped further upside; domestic institutional purchases partly offset foreign outflows.