Historic relief rally: Sensex logs biggest intraday gain of 4,205 pts on India-U.S. trade deal; ends 2.54% higher
ADVERTISEMENT
The BSE Sensex created a history on Tuesday, logging its biggest-ever intraday gain of 4,205 points, as markets cheered the long-awaited India-U.S. trade deal and a stronger rupee. The rally was broad-based, lifting both heavyweight as well as mid- and small-sized stocks.
The 30-share Sensex hit an intraday high of 85,871.73, after sharp gap-up opening at 85,323.20. The surge pushed the total market capitalisation of BSE-listed companies up by nearly ₹19 lakh crore, to about ₹474 lakh crore, marking one of the largest single-day wealth creation events for investors.
This record-breaking move overtook all previous intraday highs on the Sensex. The previous best gain of 3,041 points came on December 5, 2025, while other notable rallies include 2,778 points on June 3, 2024, 2,567 points on April 7, 2020, and 2,479 points on February 1, 2021.
Even though some profit-taking later trimmed the peak, the day highlighted strong risk-on sentiment and broad participation across market segments. February 3, 2026, now ranks as the top intraday performance in the Sensex’s history.
January 2026
Netflix, which has been in India for a decade, has successfully struck a balance between high-class premium content and pricing that attracts a range of customers. Find out how the U.S. streaming giant evolved in India, plus an exclusive interview with CEO Ted Sarandos. Also read about the Best Investments for 2026, and how rising growth and easing inflation will come in handy for finance minister Nirmala Sitharaman as she prepares Budget 2026.
Sensex ends 2.54% higher
Finally, the Sensex settled at 83,739.13, up 2,072.67 points or 2.54%. The NSE Nifty 50 rose 639.15 points, or 2.55%, to 25,727.55. Broader markets also joined the rally, with the Nifty MidCap 100 and Nifty SmallCap 100 gaining 2.84% and 2.82%, respectively. The total market cap of BSE-listed firms ended at ₹467.10 lakh crore, up ₹11.84 lakh crore.
Top gainers included Adani Ports , Bajaj Finance , IndiGo , and PowerGrid , while Tech Mahindra and Bharat Electronics (BEL) were the only decliners.
Shares of Reliance Industries Ltd (RIL) , the country’s most valuable company, extended their strong upward momentum for a second consecutive session on Tuesday, rallying over 10% across two days and adding more than ₹1.4 lakh crore to their market capitalisation.
All sectoral indices closed in the green. Nifty Realty led the pack, jumping over 4%, followed by Nifty Chemical, Pharma, and Consumer Durables, which rose more than 3% each.
“The long-anticipated India–U.S. trade deal and a stronger rupee drove this sharp rally. The cut in U.S. tariffs from 50% to 18% improves India’s competitiveness and boosts export-oriented sectors like textiles, aquaculture, gems, and pharmaceuticals, which also benefited from the Union Budget 2026,” said Vinod Nair, Head of Research at Geojit Investments.
He added that market sentiment has turned decisively positive as global trade risks ease and U.S.–Iran tensions moderate. “Going forward, markets will focus on Q3 earnings, and while results so far have been below estimates, reduced tariff risks could lead to earnings upgrades.”
Ponmudi R, CEO of Enrich Money, said the rupee strengthened alongside equities, reflecting improved external confidence and easing trade-related concerns. Overall sentiment turned firmly constructive, though near-term sustainability will hinge on global macro cues, execution of the trade agreement, and the pace of revival in foreign capital flows. “Market breadth turned decisively positive, led by export-oriented and commodity-linked sectors such as textiles, chemicals, and auto ancillaries, while financials, realty, pharma, and IT stocks also participated in the upmove.”
Technical outlook
For the Nifty, immediate support is seen in the 25,550–25,600 zone. On the upside, the 25,850–25,880 range will act as key resistance, according to SBI Securities. A sustained move above 25,880 could trigger a further rally towards 26,000, followed by 26,200 in the short term.
The Bank Nifty hit a fresh all-time high of 61,765 before profit booking of over 1,700 points. Despite intraday volatility, it closed at 60,041, up 2.43%, though forming a bearish candle on the daily chart. Key support lies in the 59,500–59,600 range, while immediate resistance is seen at 60,300–60,400. A breakout above this level could reignite upward momentum.
Both indices show a strong bullish bias in the short term, supported by their respective key support levels. Traders should watch for breakouts above resistance zones to confirm further upside potential.
(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)