Stock Market Today: Sensex Jumps 2,500, Nifty Surges 723 Points on India-US Trade Breakthrough

Indian Equity Markets Surge on Strong Bullish Note

Indian equity markets opened on a strong bullish note on Tuesday, driven by positive geopolitical news, firm global cues, and sharp gains across Asian markets.

• Benchmark indices surged at the open, with the BSE Sensex jumping 2489.12 points (+3.05%%) to 84,064.91.
• The NSE Nifty soared 686.80 points (+2.74%) to 25,795.65.

US-India Trade Agreement Boosts Sentiment

Market sentiment was turbocharged after the much-awaited India–US trade agreement, under which Washington agreed to slash tariffs on Indian goods to 18% from 50%, in exchange for India halting Russian oil purchases and lowering trade barriers.

• The announcement was made by Donald Trump, who said the US would slash tariffs on Indian goods to 18% from 50%, with the trade arrangement “effective immediately.”
• Trump added that India has agreed to lower tariff and non-tariff barriers for American goods and increase purchases across energy, technology, agriculture and other sectors.

The announcement was welcomed by Narendra Modi, who thanked Trump for what he described as a “wonderful announcement.”

Market Participants Echo Optimism

Market participants and industry leaders echoed the optimism, calling the deal a major overhang removal for Indian equities.

Global Cues Supportive

Adding to the optimism, the Indian rupee strengthened sharply, opening at 90.40 against the US dollar, up by Rs 1.10, reflecting improved capital flow expectations and reduced external risk.

Global cues were also supportive, with Asian markets rebounding strongly, and S&P 500 futures edged higher amid improving risk appetite after a jump in US factory activity.

Buying Momentum in Automobile Stocks

Buying momentum was especially strong in automobile and auto ancillary stocks, with the Nifty Auto index jumping nearly 4%.

• The index constituents, such as Bharat Forge, Sona Comstar, Motherson, Tube Investments of India and Uno Minda, also rallied sharply.
• Bharat Forge hit the upper circuit and touched a fresh 52-week high of ₹1,588.

Analyst Expectations

Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, called the announcement a “game changer,” saying it removes the single biggest uncertainty that had been weighing on markets.

• He expects India’s growth to improve to around 7.5% in FY27, aided by higher exports to the US.
• He also sees scope for a stronger rupee, supported by improved trade flows and investor confidence.
• Corporate earnings growth could accelerate to 16–18%, he added.

Future Outlook

According to analysts, the combination of the US–India trade deal, the EU–India trade agreement, and a growth-oriented Union Budget could significantly boost sentiment and revive risk appetite in the months ahead.

Prior Market Performance

Indian equities had already closed higher in the previous session after a volatile day, with the Sensex gaining 943 points to end at 81,666, while the Nifty added nearly 263 points, settling close to 25,100.

With global cues supportive and a key geopolitical uncertainty now addressed, Dalal Street entered the session with strong risk-on momentum, as investors reassessed India’s growth and export prospects under the new trade framework.