Indian equity markets got off to a stellar start on Tuesday, brushing aside Budget Day jitters and unleashing a powerful two-session rally that added nearly ₹24 lakh crore to investor wealth, with benchmark indices-the Sensex and the Nifty-clocking one of their sharpest gains in recent times.

The total market capitalisation of BSE-listed companies jumped by nearly ₹19 lakh crore in the first hour of trade on Tuesday, after already adding close to ₹5 lakh crore on Monday. The sharp rally was triggered by the announcement of the keenly awaited India–US trade deal, which boosted investor confidence and sparked aggressive buying across sectors.

With the two-day surge, the combined market value of all BSE-listed companies climbed from around ₹450 lakh crore at Sunday’s close to nearly ₹474 lakh crore during early trade on Tuesday. Over the two sessions, the Sensex surged as much as 5,150 points, while the Nifty50 gained 1,483 points.

In opening trade on Tuesday, the 30-share Sensex zoomed 3,656 points, or 4.47%, to open at 85,323.20. The NSE Nifty mirrored the rally, jumping 1,220 points to open above the 26,300 mark. Broader markets also joined the surge, with the Nifty Midcap 100 and Nifty Smallcap indices rising around 4% each, signalling broad-based participation.

RIL, Adani Ports, Bajaj Finance lead rally

Reliance Industries, the country’s most valuable stock, climbed over 7% over the past two sessions, taking its market capitalisation to around ₹19.65 lakh crore.

All 30 Sensex constituents were trading in the green. Adani Ports led the gains, surging 7.38%, followed by Bajaj Finance (+5.71%) and IndiGo (+5.64%). Other major gainers included Sun Pharma (+4.82%), Eternal (+4.64%), Power Grid (+4.44%), Bajaj Finserv (+4.43%), Reliance Industries (+4.37%) and Larsen & Toubro (+4.24%).

Banking stocks also saw strong buying interest, with Kotak Mahindra Bank up 3.38%, SBI gaining 3.11%, ICICI Bank rising 3.20%, HDFC Bank advancing 2.72% and Axis Bank adding 2.69%.

Among IT and consumer names, Titan climbed 3.24%, Infosys gained 2.62% and HCL Technologies rose 2.02%, while Tata Steel advanced 2.39%, NTPC added 1.61% and ITC edged up 0.21%.

Game changer for stock markets

According to market experts, the India–US trade deal is a game changer for the Indian economy and equity markets.

“The dramatic announcement of the long-awaited India–US trade deal and the US decision to cut tariffs on India from 50% to 18% is a game changer for the Indian economy and stock markets. The delay in the deal was the single most important factor weighing on markets,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.

He added that the combination of the India–US trade deal, the EU–India trade agreement and a growth-oriented Budget is likely to boost market sentiment and revive animal spirits in the economy.

“Technically, a market that was heavily short will see short-covering, adding fuel to the rally. The upmove will be broad-based across market capitalisations, but fairly valued large-caps have the potential to outperform, aided by FII inflows,” Vijayakumar said.

Tuesday’s sharp rebound came after markets were rattled during Sunday’s Budget session, when equities lost nearly ₹10 lakh crore in market capitalisation following the government’s proposal to hike the Securities Transaction Tax on futures and options, triggering heavy profit-taking in derivatives-linked stocks.

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