India-US trade deal lifts markets: Nifty up 1,219, Sensex surges 3,656 at opening bell
Indian equity benchmarks opened with a historic rally on Tuesday, surging sharply in early trade as investor sentiment improved after the announcement of a key India–US trade deal and supportive global cues.
The Nifty 50 opened at 26,308.05, jumping 1,219.65 points or 4.86 per cent, while the BSE Sensex surged 3,656.74 points, or 4.48 per cent, to begin the session at 85,323.20.
Markets saw broad-based buying at the opening bell, driven by improved global risk sentiment following the trade deal announcement between India and the United States.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the long-awaited trade agreement and the US decision to reduce tariffs on Indian goods from 50 per cent to 18 per cent could reshape market expectations. He said India’s growth rate could rise to around 7.5 per cent in FY27, supported by higher exports to the US, while corporate earnings growth may accelerate to 16–18 per cent. He also noted that the rupee could strengthen sharply.
Vijayakumar added that the combined impact of the US–India trade deal, the EU–India trade agreement, and a growth-oriented Union Budget would lift market sentiment. He said markets, which were heavily short, could see sharp short-covering, with large-cap stocks likely to outperform on the back of foreign institutional investor inflows.
He said banking majors, non-banking financial companies, and blue-chip stocks in telecom, capital goods, and IT could see strong buying interest, while textile stocks may remain in focus.
In the broader market, the Nifty 100 rose nearly 4 per cent, while the Nifty Smallcap surged 4.6 per cent and the Nifty Midcap gained 4.05 per cent.
Sectorally, Nifty Auto jumped 5 per cent, Nifty IT gained 5.85 per cent, Nifty FMCG rose 1.8 per cent, Nifty Metal climbed 3.88 per cent, Nifty Pharma advanced 4.27 per cent, and Nifty Consumer Durables rose 4.25 per cent.
Among individual stocks, Vedanta rose 3.38 per cent to Rs 683, while Hindustan Zinc gained 2.8 per cent to Rs 627.
Ponmudi R, CEO of Enrich Money, said the reduction in reciprocal tariffs on Indian goods had lifted global risk appetite, with GIFT Nifty indicating a sharp gap-up opening. He added that the positive external trigger helped markets move past recent volatility seen after the Union Budget 2026–27, following the hike in securities transaction tax on derivatives.
The rally followed US President Donald Trump’s announcement of a trade deal with India, months after the US imposed steep tariffs on Indian goods in August 2025. The agreement, announced on Trump’s social media platform Truth Social, includes tariff reductions and references to India’s energy imports from Russia.
Meanwhile, gold prices on the Multi Commodity Exchange rose around 2 per cent to Rs 1,47,355 per 10 grams, while silver prices jumped nearly 6 per cent to Rs 2,50,436 per kg.
On the fund flow front, foreign institutional investors were net sellers worth Rs 1,832.5 crore on Monday, while domestic institutional investors were net buyers to the tune of Rs 2,446.3 crore.
Asian markets also traded higher, with Japan’s Nikkei 225 rising over 3 per cent, South Korea’s KOSPI gaining 4 per cent, Taiwan’s weighted index advancing 1.46 per cent, and Singapore’s Straits Times up 0.8 per cent. Hong Kong’s Hang Seng index, however, traded marginally lower.
