Mumbai | February 3, 2026
Indian equity benchmarks staged a powerful rally in early trade on Tuesday, February 3, 2026, as strong optimism around the India–US trade deal lifted investor sentiment on Dalal Street.
Benchmark indices opened with a massive gap-up, reflecting confidence across sectors, particularly IT, pharma, and export-oriented stocks.
📊 Market Snapshot: Early Trade Highlights
Sensex surged by over 2,400 points, signaling aggressive buying by both domestic and foreign investors
Nifty 50 jumped around 700 points, moving closer to fresh record highs
Market participants attributed the sharp rise to the recently announced trade agreement between India and the United States, which is expected to ease tariffs and improve export prospects.
🌍 India–US Trade Deal Fuels Rally
The newly announced India–US trade deal has significantly boosted expectations for export-driven sectors. Analysts believe the agreement could unlock fresh business opportunities, particularly for IT services, pharmaceuticals, and manufacturing exporters.
The deal has also improved overall risk appetite, encouraging investors to deploy capital aggressively in equities.
🚀 IT Stocks Lead the Charge
The IT sector emerged as the biggest gainer in early trade, benefiting from expectations of higher deal flow from US clients.
Tata Consultancy Services (TCS) and Infosys jumped 5–7%, driven by optimism around new project wins and stable dollar revenues
Other IT majors also traded firmly in the green, pushing the Nifty IT index sharply higher.
🏦 Heavyweights in Focus
Index heavyweights witnessed strong buying interest:
Reliance Industries
HDFC Bank
Infosys
Their gains provided significant support to the benchmark indices during early trade.
💱 Rupee Strengthens Against Dollar
The Indian rupee strengthened against the US dollar following the positive trade news. A firmer rupee is expected to reduce crude oil import costs, benefiting sectors such as paints, tyres, and logistics.
Shares of companies linked to oil-derived raw materials showed early signs of buying interest.
🌐 FIIs Return as Buyers
Foreign institutional investors (FIIs), who had been net sellers in recent sessions, returned as strong buyers in early trade, adding to the rally. Market participants noted visible inflows at the opening bell.
Investors can track real-time data on the NSE India website.
⚠️ Market Caution
While the opening momentum remains strong, analysts caution that intraday volatility may persist, especially following recent Budget announcements. Investors are advised to maintain disciplined stop-loss strategies.
