Stock Market Today: Indian equity markets witnessed an extraordinary rally on Tuesday, with benchmark indices opening sharply higher, driven by strong global cues and optimism surrounding the landmark India-US trade agreement.
At the opening bell, the Sensex surged 3,656.74 points (4.48%) to 85,323.20, while the Nifty 50 jumped 1,219.65 points (4.86%) to 26,308.05, marking one of the strongest single-day opening gains in recent years.
The sharp rise reflects renewed investor confidence, improved risk appetite, and expectations of stronger economic growth following the easing of trade tensions between India and the United States.
India-US Trade Deal Acts as a Major Catalyst
The rally was sparked after the United States announced a significant reduction in tariffs on Indian goods, cutting reciprocal tariffs from 25% to 18%, while India agreed to lower tariffs and non-tariff barriers on US imports.
Market participants believe the deal removes a major overhang that had been weighing on Indian equities for months.
According to market experts, the agreement is expected to:
- Boost India’s export competitiveness
- Support GDP growth towards 7.5% in FY27
- Improve foreign investment inflows
- Strengthen the Indian rupee
Rupee Strengthens Sharply Against Dollar
The Indian rupee appreciated 1.2%, opening at 90.40 per US dollar, compared to its previous close of 91.51. Currency markets reacted positively to expectations of increased capital inflows and improved trade balance prospects.
Non-deliverable forward (NDF) markets had already indicated a sharp rebound, pointing to an opening near the 90.15–90.25 range.
Gift Nifty Signals Massive Gap-Up Opening
Early indicators from Gift Nifty had already hinted at a blockbuster session. Gift Nifty was trading near the 26,086 level, carrying a premium of nearly 945 points over the previous Nifty futures close, clearly signalling a strong gap-up opening for domestic indices.
Global Markets Provide Strong Support
Global cues remained firmly positive:
- Asian markets rallied, led by Japan’s Nikkei and South Korea’s Kospi
- US markets closed higher overnight, driven by technology stocks
- Improved global risk sentiment followed the trade deal announcement
The synchronized global rally added further momentum to Indian equities.
Sectors and Stocks in Focus
Key Beneficiary Sectors
- Auto components
- Textiles
- Chemicals
- Solar and renewable energy
- Engineering and export-oriented industries
Brokerage firms highlighted companies such as Bharat Forge, Sona Comstar, Welspun Living, Navin Fluorine, PI Industries, SRF, and select Adani Group stocks as potential beneficiaries of the deal.
Earnings Watch: Busy Day on Dalal Street
Adding to the excitement, over 110 companies are scheduled to announce their Q3 earnings today. Major names include:
- Adani Enterprises
- Adani Ports & SEZ
- Bajaj Finance
- Varun Beverages
- NMDC
- Bharat Coking Coal
Stock-specific action is expected to remain intense throughout the session.
Market Outlook: Bulls in Full Control
Market analysts believe the removal of tariff uncertainty and improved currency outlook could lead to sustained buying interest, especially from foreign portfolio investors, who had remained cautious over the past year.
With India now broadly aligned with its Asian peers on tariff rates, experts say the trade deal restores a level playing field for Indian exporters, setting the stage for medium-term market strength.
Tuesday’s rally marks a turning point for Indian markets, as the India-US trade agreement breathes fresh life into investor sentiment. With strong global cues, a firmer rupee, and earnings momentum building, Dalal Street appears poised for an eventful and optimistic trading phase ahead.