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.
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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.
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