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Markets Rally Early Amid Optimism on India–US Interim Trade Deal

Indian stock indices opened higher on renewed optimism over a potential India–US trade agreement ahead of the July 9 tariff deadline, lifting sentiment across key sectors

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Markets Rally Early Amid Optimism on India–US Interim Trade Deal
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2 July 2025 11:27 AM IST

India’s benchmark stock indices jumped in early trade on July 2, 2025, fueled by optimism surrounding a prospective interim trade deal between India and the United States. With President Trump signalling a deal could be reached soon—and before the looming July 9 deadline to impose reciprocal tariffs—investors cheered the prospect of tariff relief.

At around 8:30 a.m. IST, Gift Nifty futures traded near 25,686, suggesting a strong opening for the Nifty 50 above its previous close of 25,542. This positive sentiment echoed global equity market gains, with U.S. stock futures rising and S&P 500 futures pointing to another record high on trade news.

The Sensex also saw early upward movement, gaining approximately 140–178 points, supported by rallies in heavyweight stocks such as Reliance Industries and HDFC Bank. Analysts forecast that sectors like autos, pharmaceuticals, agriculture, telecom, electronics, and renewables—those with significant export exposure—stand to benefit most from a trade breakthrough.

Still, caution remains as financial stocks lagged—reflecting uncertainty ahead of the tariff deadline. Mid- and small-cap segments showed limited participation, with the market awaiting more concrete trade progress.

India and the U.S. are reportedly close to finalizing an interim agreement that would pause new tariffs and set the stage for deeper negotiations on autos, agri-commodities, steel, and more—a deal that could be announced before July 8.

India–US trade stock market rally Sensex Nifty Gift Nifty trade deadline tariffs financial stocks export sectors global markets 
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