Trade deal hopes with US lent support to Indian stocks; Sensex rises after 3-day slump
Indian stock markets bounce back as renewed hopes of a trade breakthrough between India and the US restore investor confidence. Sensex recovers after a three-session slump.
Trade deal hopes with US lent support to Indian stocks; Sensex rises after 3-day slump
After a jittery start to the week, Indian equity markets staged a notable comeback on Tuesday, with the Sensex snapping a three-day losing streak, buoyed by revived optimism over a potential trade deal between India and the United States.
Trade Sentiment Lifts Markets
Traders pointed to fresh discussions between Indian and US officials aimed at resolving long-standing trade issues — a development that appears to have injected much-needed confidence into investor sentiment. Hopes of reduced tariffs, eased regulatory barriers, and smoother investment flows between the two nations are being seen as key positives for Indian exporters and tech players.
Market Snapshot
The BSE Sensex climbed over 250 points, reclaiming the 75,000 mark during intraday trading before closing slightly lower. Broader indices also saw mild gains, with the Nifty 50 inching closer to 22,850. Sectors including IT, FMCG, and autos led the rally, while metals and oil & gas stocks remained relatively subdued.
Analyst Insights
“Markets were in correction mode for the past few sessions, and today’s bounce-back was largely driven by positive global cues and renewed trade optimism. A stable geopolitical outlook, coupled with the potential for deeper Indo-US cooperation, is encouraging for long-term investors,” said Meera Shah, senior research analyst at CapitalEdge Securities.
US-India Trade Momentum
The trade optimism stems from reports that both countries are reviewing previous tariffs and considering strategic agreements in emerging sectors like semiconductors, renewable energy, and AI-enabled tech services. While no deal has been finalized, the tone of negotiations has reportedly turned more constructive.
Looking Ahead
Investors will now closely watch the US Fed’s upcoming statements on inflation and interest rate guidance, as well as India’s export data due later this week. With global and domestic factors at play, volatility may persist, but the mid-term outlook remains positive if trade ties continue to strengthen.
