Mumbai, India — February 3, 2026
Indian equity markets witnessed a powerful rally on Tuesday after India and the United States reached a long-awaited trade agreement, triggering broad-based buying across sectors and lifting investor sentiment.
The benchmark BSE Sensex and NSE Nifty 50 closed over 2.5 percent higher after news emerged that the US would reduce tariffs on Indian goods to 18 percent, down from 25 percent. The announcement followed a phone conversation between US President Donald Trump and Indian Prime Minister Narendra Modi, according to official statements.
📈 Sensex, Nifty End with Strong Gains
After opening sharply higher, the 30-share Sensex surged as much as 4,205 points, or 5.14 percent, during intraday trade to hit a record high of 85,871.73. It later settled 2,072.67 points higher, closing at 83,739.13, up 2.54 percent.
The broader Nifty 50 index gained 639.15 points, or 2.55 percent, to close at 25,727.55, after touching an intraday high of 26,341.20.
💱 Rupee Posts Best Performance in Asia
The Indian rupee strengthened sharply, rising 122 paise or 1.33 percent against the US dollar to close at 90.27 (provisional). The currency emerged as the strongest performer among major Asian currencies, supported by trade optimism and capital inflow expectations.
🇺🇸 US Cuts Tariffs on Indian Goods
President Trump confirmed that Washington would reduce reciprocal tariffs on Indian exports to 18 percent, significantly improving India’s competitive position in global trade. The tariff cut is expected to benefit export-driven sectors such as textiles, leather, gems and jewelry, seafood, pharmaceuticals, and specialty chemicals.
🏭 Top Gainers on the Sensex
Among the Sensex constituents, Adani Ports led the rally with gains of over 9 percent. Other notable gainers included Bajaj Finance, InterGlobe Aviation, Power Grid, Sun Pharma, Bajaj Finserv, and Reliance Industries.
Only Tech Mahindra and Bharat Electronics ended the session in the red.
🌍 Global Markets Provide Strong Support
Asian markets traded firmly, with South Korea’s Kospi surging nearly 7 percent. Japan’s Nikkei 225, China’s Shanghai Composite, and Hong Kong’s Hang Seng also closed higher. European markets were trading in positive territory, while US markets ended Monday’s session on a strong note.
🛢️ Crude Oil Eases
Global oil benchmark Brent crude slipped 0.65 percent to $65.87 per barrel, offering relief on inflation concerns.
💼 FII, DII Activity
Exchange data showed that foreign institutional investors (FIIs) sold shares worth ₹1,832.46 crore on Monday, while domestic institutional investors (DIIs) purchased equities worth ₹2,446.33 crore, providing stability to the market.
🔮 Outlook
Market participants believe the India-US trade agreement, combined with a stronger rupee and supportive budget measures, could revive foreign investor interest and sustain momentum in Indian equities in the near term.
