Sensex soars over 2,000 pts | Lower US tariffs boost export hopes, lift investor sentiment

Mumbai: Stock markets cheer India-US trade deal: Sensex zooms 2,072 pts, Nifty settles above 25,700 Mumbai, Feb 3 (PTI) Benchmark stock index Sensex zoomed 2,072 points while the broader Nifty closed above the 25,700 level on Tuesday after India and the US agreed to a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18 per cent.

The 30-share BSE barometer closed at 83,739.13, up 2,072.67 points or 2.54 per cent, logging its best single-day gain in the past eight months. The index started the trade on a buoyant note, and later jumped 4,205.27 points or 5.14 per cent to hit the day’s high of 85,871.73. The 50-share NSE Nifty zoomed 639.15 points or 2.55 per cent to settle at 25,727.55. During the day, it surged 1,252.8 points or 4.99 per cent to 26,341.20.

India and the US have agreed to a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18 per cent from the current 25 per cent, US President Donald Trump said on Monday after a phone conversation with Prime Minister Narendra Modi.

From the 30 Sensex firms, Adani Ports surged 9.12 per cent. The other prominent winners were Bajaj Finance, InterGlobe Aviation, Power Grid, Sun Pharma, Bajaj Finserv and Reliance Industries. Tech Mahindra and Bharat Electronics were the only laggards. The trade deal also propelled a sharp rally in textile, leather, gems and jewellery, seafood exports and specialty chemicals stocks. “Indian equities experienced a significant rally today, driven by the long-anticipated India–US trade deal and a strengthening rupee, which boosted expectations of renewed FII inflows.

“The reduction of US tariffs on Indian goods from 50 per cent to 18 per cent enhances India’s competitive position among emerging markets and bolsters the outlook for export-oriented sectors with high US exposure, such as textiles, aquaculture, gems and pharmaceuticals, which were supported in the 2026 Union Budget,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

“Indian equity markets staged a sharp rally today, recording one of the strongest single-day gains in recent times after the announcement of a landmark India–US trade deal that significantly reduced reciprocal tariffs on Indian exports,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.