Indian Stock Market Records Spectacular Rally Following US-India Trade Agreement
The Indian stock market experienced one of its most significant rallies in recent history on Tuesday, February 3, 2026, as the long-anticipated trade deal between the United States and India was officially finalized. This landmark agreement has substantially reduced tariffs on Indian exports, creating a wave of optimism across financial markets.
Broad-Based Buying Spree Across Market Segments
The positive development triggered extensive buying activity across various market segments, with export-oriented sectors emerging as the primary beneficiaries. Investor sentiment received a substantial boost, leading to remarkable gains in both equity indices and the currency market.
Capital market stocks, which had previously faced significant pressure following unexpected announcements in the Union Budget 2024, also witnessed renewed investor interest as optimism spread throughout the financial ecosystem.
Major Index Performance and Market Movements
The benchmark Nifty 50 index surged an impressive 639 points, representing a gain of 2.55%, to close at 25,727 points. This performance marks one of the index's best intraday showings in recent memory. Similarly, the S&P BSE Sensex jumped 2,259 points, or 2.54%, settling at 83,739 points.
Broader markets demonstrated even more substantial gains, with the Nifty Midcap 100 and Nifty Smallcap 100 indices each rallying nearly 3% during the trading session. This widespread market strength indicates robust investor confidence across market capitalizations.
Currency Market Responds Positively
The positive momentum extended beyond equities to the currency markets, where the Indian rupee strengthened significantly against the US dollar. The rupee surged over 1% against the dollar, recording its most substantial intraday gain in a full year. This currency appreciation further underscores the comprehensive market response to the trade agreement.
Notable Stock Performances
Among individual stocks, several companies emerged as standout performers during this market rally. Welspun Living, LT Foods, Aarti Industries, and Ather Energy Trident were identified among the top gainers, benefiting from the improved trade conditions and enhanced market sentiment.
The market's response to the US-India trade deal demonstrates how international trade agreements can significantly influence domestic financial markets, creating opportunities for investors and strengthening economic indicators across multiple dimensions.
