Indian stock markets experienced a significant surge on Tuesday following the finalization of the long-awaited India–US trade deal. Both the Sensex and the Nifty, the benchmark indices, showed substantial gains, reflecting positive investor sentiment. The Sensex soared by 2,072.67 points, or 2.54%, closing at 83,739.13, while the Nifty rose by 639.15 points, or 2.55%, settling at 25,727.55.
The positive momentum was driven by US President Donald Trump’s announcement of reduced reciprocal tariffs on Indian goods to 18%. This news instilled confidence in the market, with investors anticipating enhanced trade relations benefiting Indian businesses and the overall economy. Various heavyweight stocks like Adani Ports, Bajaj Finance, IndiGo, and PowerGrid led the rally on the Sensex, except for Tech Mahindra and Bharat Electronics Limited (BEL) which ended in negative territory.
Market optimism was widespread across all sectors, with every sectoral index closing higher. Notably, the Nifty Realty index emerged as the top performer, surging by over 4%. Sectors such as chemicals, pharmaceuticals, and consumer durables also witnessed significant buying interest, with their indices jumping by more than 3% each. The broader market also participated in the rally, with the Nifty MidCap 100 index advancing by 2.84% and the Nifty SmallCap 100 index gaining 2.82%.
Analysts attributed the strong market performance to investor confidence bolstered by positive trade developments and expectations of improved economic outlook. Additionally, the Indian Rupee strengthened significantly, appreciating by Rs 1.28 or nearly 1.40% following the announcement of the US–India trade deal, marking its best single-day gain since December 2018.
