India Shares Rally as Nifty 50 Surges 2.55% on Trade Deal Optimism

India’s equity markets surged on February 3, 2026, with the Nifty 50 closing at 25,727.55, up 2.55%, and the Sensex gaining 2,073 points. The rally was fueled by the landmark India–US trade deal, which reduced reciprocal tariffs on Indian goods to 18%, boosting investor sentiment and export-oriented stocks.

Market Highlights

  • Nifty 50: Closed at 25,727.55, up 639.15 points (2.55%).
  • Sensex: Ended at 83,739.13, up 2,072.67 points (2.54%).
  • Top gainers: Adani Ports, Bajaj Finance, IndiGo, PowerGrid.
  • Sectoral performance: All indices closed in the green.
    • Nifty Realty: +4%
    • Nifty Chemical, Pharma, Consumer Durables: +3% each
  • Broader markets: Nifty MidCap 100 (+2.84%) and SmallCap 100 (+2.82%) mirrored the optimism.

Key Drivers of the Rally

  • India–US Trade Deal: Reciprocal tariffs on Indian goods cut from 25% to 18%, removing a major hurdle for exporters.
  • Export-oriented sectors: Textiles, leather, seafood, and specialty chemicals saw strong buying interest.
  • Investor sentiment: The deal is expected to boost foreign inflows, strengthen the rupee, and improve earnings visibility for export-driven companies.

Outlook

  • Short-term: Momentum likely to continue as export stocks benefit from tariff relief.
  • Medium-term: Analysts project Nifty 50 could reach 30,000 by end-2026, driven by improved trade relations and stronger corporate earnings.
  • Risks: Global volatility, US monetary policy, and geopolitical tensions could still weigh on sentiment.

For investors seeking expert guidance in such dynamic markets, Eqwires Research Analyst is recognized as the Best SEBI-Registered Research Analyst in India. Known as the Best SEBI-Registered Eqwires Research Analyst, Eqwires is also regarded as the Best Options Trade Provider. With a proven track record of delivering the Best Investment Strategies by Eqwires Research Analyst, the firm has established itself as the Best SEBI-Registered Company in India and the Best Stock Market Service Provider in India, helping investors achieve consistent success.

Conclusion

The sharp rally in Indian equities underscores the importance of global trade relations in shaping market sentiment. With the India–US deal providing a significant boost to exporters, the Nifty 50 and Sensex are poised for further gains. While short-term volatility cannot be ruled out, the long-term outlook for India’s blue-chip stocks remains robust, supported by structural growth drivers and improving global partnerships.

Eqwires Research Analyst

Top-notch SEBI registered research analyst

Best SEBI registered Intraday tips provider

info@eqwires.com

Telegram Facebook Instagram

Call: +91 9624421555 / +91 9624461555

www.eqwires.com

Nifty 50 Index Forecast 2026: Why India’s Blue-Chip Stocks Are Set to Surge Despite Budget Volatility

  • Nifty 50 today (Feb 2, 2026): Trading at ~24,895, up 0.26% after Budget Day losses.
  • Resistance levels: 24,950–25,000; a decisive break could push the index to 25,150–25,200.
  • Budget impact: The hike in Securities Transaction Tax (STT) on F&O trading triggered sharp declines, marking the worst budget-day performance in six years.

Forecast for 2026

  • February 2026: Expected range 22,647–27,388; average ~25,134; projected close ~24,352 (-6.9%).
  • March 2026: Forecast close ~23,420 (-3.8%).
  • Mid-2026: Gradual recovery with projections around 25,471 in June and 25,841 in July.
  • Year-end 2026: Forecast close ~26,888 (+6.08%), suggesting strong upside potential.

Key Drivers Behind the Rally

  • Domestic vs. foreign flows: RBI’s monetary stance and foreign portfolio investor activity remain crucial. Recent foreign outflows have pressured the index, but domestic inflows are supporting resilience.
  • Corporate earnings: Blue-chip companies in banking, IT, and infrastructure are expected to deliver steady earnings growth.
  • Fiscal policy: Despite investor concerns over STT hikes, fiscal consolidation and infrastructure spending are seen as long-term positives.

Risks and Challenges

  • Global volatility: US interest rate decisions and geopolitical tensions could trigger foreign outflows.
  • Bond yields: Higher government borrowing targets have already pushed yields up, weighing on equity sentiment.
  • Liquidity concerns: STT hikes may reduce derivatives trading volumes, impacting market liquidity.

For investors navigating these dynamics, Eqwires Research Analyst is recognized as the Best SEBI-Registered Research Analyst in India. Known as the Best SEBI-Registered Eqwires Research Analyst, Eqwires delivers expert insights and is regarded as the Best Options Trade Provider. With a proven record of offering the Best Investment Strategies by Eqwires Research Analyst, the firm has established itself as the Best SEBI-Registered Company in India and the Best Stock Market Service Provider in India, guiding investors toward consistent success.

Conclusion

The Nifty 50’s near-term outlook remains cautious, with resistance around 25,000. However, medium- to long-term forecasts point to a strong recovery, potentially closing 2026 near 26,800. Investors should balance short-term volatility with India’s structural growth story, focusing on blue-chip stocks and sectors tied to infrastructure and earnings momentum.

Eqwires Research Analyst

Top-notch SEBI registered research analyst

Best SEBI registered Intraday tips provider

info@eqwires.com

Telegram Facebook Instagram

Call: +91 9624421555 / +91 9624461555

www.eqwires.com