What caused the Indian equity benchmarks to rise sharply on Tuesday?

The Indian equity benchmarks rose sharply due to strong buying interest, supported by a long-awaited trade deal between India and the United States that eased tariff worries.

What are the key outcomes of the India-US trade deal?

The India-US trade deal involves Washington reducing tariffs on Indian goods and New Delhi agreeing to lower tariffs and non-tariff barriers on U.S. products, alongside a halt in Russian crude oil purchases.

Which companies' stocks boosted the Indian indices during the recent rally?

Adani Ports & SEZ, Bajaj Finance, and Reliance Industries were among the key stocks that boosted the Indian indices during the recent rally.

Home / Business and Economy / Markets Surge on Landmark India-US Trade Pact

Markets Surge on Landmark India-US Trade Pact

3 Feb

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Summary

Indian equity benchmarks surged, marking the second consecutive session of gains.
A new trade deal between India and the US eased tariff worries and boosted sentiment.
Key stocks like Adani Ports, Bajaj Finance, and Reliance Industries led the index gains.

Markets Surge on Landmark India-US Trade Pact

Indian equity benchmarks concluded Tuesday on a strong upward trajectory, marking their second consecutive session of gains fueled by robust buying interest. The market sentiment received a significant boost from the announcement of a long-anticipated trade deal between India and the United States, effectively alleviating tariff-related concerns that had previously impacted market performance.

The S&P BSE Sensex experienced a substantial increase of 2,072.67 points, closing at 83,739.13, while the Nifty 50 index added 639.15 points to reach 25,727.55. This surge follows a cumulative gain of 3.74% for the Sensex and 3.63% for the Nifty over the past two trading sessions. Notable contributors to this rise included Adani Ports & SEZ, Bajaj Finance, and Reliance Industries.

The landmark trade agreement, announced following a call between Prime Minister Narendra Modi and U.S. President Donald Trump, aims to increase bilateral trade to $500 billion by 2030. Under the pact, Washington will reduce tariffs on Indian goods, and New Delhi has agreed to reduce tariffs and non-tariff barriers on U.S. products, including a cessation of Russian crude oil purchases. This development is expected to significantly benefit export-oriented sectors like textiles and apparel.