Bumper opening for markets as investors cheer India–U.S. trade deal; Sensex, Nifty surge up to 4.5%
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Extending gains for the second consecutive session on Tuesday, Indian equity markets opened on a strong note as investors welcomed the much awaited India–U.S. trade deal. The benchmark indices—the BSE Sensex and the NSE Nifty—surged up to 4.5% in opening trade amid broad-based buying across sectors.
The 30-share Sensex began the day at 85,323.20, up 3,656 points, or 4.47%, while the NSE Nifty jumped 1,220 points to open at the 26,308 level. In the broader markets, the Nifty MidCap 100 and the SmallCap also rallied 4% each.
All 30 Sensex constituents were trading in the green, led by gains in Adani Ports , Bajaj Finance , Eternal , Bajaj Finserv , Reliance Industries , Infosys , Titan, Mahindra & Mahindra, L&T, IndiGo, Sun Pharma, Trent, HCL Technologies, and Maruti Suzuki, which rose between 3% and 6%.
In a surprise move late on Monday, U.S. President Donald Trump announced a trade agreement between India and the United States, cutting reciprocal tariffs on Indian goods from 25% to 18%. In addition, a separate punitive levy of 25% was completely withdrawn after India agreed to halt imports of Russian oil, bringing the total tariff burden down from 50% to 18%.
On Monday, equity markets ended on a strong note, with benchmark indices gaining as much as 1.2% during the session as investors digested the Union Budget announcements. The Sensex settled 943 points, or 1.17%, higher at 81,666, while the Nifty50 closed up 1.06% at 25,088. The overall market capitalisation of BSE-listed companies increased by more than ₹5 lakh crore to ₹455.26 lakh crore.
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Market participants said policy continuity in the Budget, along with a clear focus on growth and fiscal discipline, helped bolster confidence in the medium- to long-term earnings outlook.
Global equity markets rally
In the overnight trade, Wall Street closed higher in overnight trade as investors welcomed the announcement of the India–U.S. trade deal. All three major U.S. indices ended in positive territory, with the Dow Jones Industrial Average up 1.05%, the S&P 500 rising 0.54%, and the Nasdaq Composite gaining 0.56%. The S&P 500 snapped a two-session losing streak, driven by gains in chipmakers and other artificial intelligence–linked stocks, after recent concerns over elevated technology valuations.
Taking cues from the strong overnight performance on Wall Street, Asian equity markets were trading higher in early deals, with the MSCI Asia-Pacific Index rising over 3%, led by gains in technology stocks. Japan’s Nikkei surged 2.5%, recovering Monday’s losses, while South Korea’s KOSPI jumped 5% after plunging 5.3% in the previous session, marking its biggest single-day rise since April 10 last year.
Among other Asian peers, China’s Shanghai Composite, Singapore’s Straits Times Index, Taiwan’s Weighted Index, and Indonesia’s Jakarta Composite were up between 0.3% and 0.9%. In contrast, Hong Kong’s Hang Seng Index was trading marginally lower.
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