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Indian Stocks Rise on US Trade Deal, Positive Global Cues

Indian stock indices extended their gains, closing higher on positive global cues and the conclusion of an interim trade agreement between the US and India. Analysts noted a strong resurgence in foreign institutional investor inflows and rupee appreciation as key supportive factors, though profit-booking in sectors like banking and IT kept gains in check. The market's near-term trajectory is now expected to hinge on corporate earnings, which have been mixed so far. The trade deal framework addresses non-tariff barriers and reduces tariffs on Indian goods entering the US.

Key Points: Indian Stock Indices Gain on US Trade Deal, FII Inflows

  • US-India interim trade deal concluded
  • FII inflows strengthen market
  • Positive cues from Asian markets
  • Profit-booking caps gains
  • Focus shifts to Q3 earnings
2 min read

Indian stock indices extend gains over US trade deal, positive global cues

Sensex and Nifty extend gains driven by US-India interim trade agreement, positive Asian cues, and a resurgence in foreign institutional investor inflows.

"A strong resurgence in FII inflows, coupled with rupee appreciation, is further bolstering the investor sentiment - Vinod Nair, Geojit Investments"

New Delhi, February 10

Indian stock indices settled higher on Tuesday, extending gains from the previous session, with analysts attributing it to the interim trade deal with the US, the possible return of foreign institutional investors, and positive cues from other Asian markets.

Sensex closed at 84,273.92 points, up 208.17 points, up 0.25 per cent. Nifty closed at 25,935.15 points, up 67.85 points or 0.26 per cent.

Vinod Nair, Head of Research, Geojit Investments Limited, said Domestic equities continued their upward momentum, supported by the US trade agreement and positive cues from key Asian markets.

"A strong resurgence in FII inflows, coupled with rupee appreciation, is further bolstering the investor sentiment, although intermittent profit-booking was visible across sectors. With tariff-related concerns largely easing, the near-term market trajectory will hinge on Q3 earnings, which have been mixed and below expectations so far. Investors are now focused on the combined impact of recent fiscal and monetary measures to revive earnings momentum in the coming quarters," Nair added.

Ponmudi R, CEO of Enrich Money, a SEBI - registered online trading and wealth tech firm, said Indian equity markets closed the session on a cautious, range-bound note, as profit booking in banking, IT and healthcare stocks emerged as a key drag on the indices, keeping overall sentiment subdued.

"In the absence of strong global or domestic triggers, investors preferred selective positioning over aggressive buying," Ponmudi R said.

The US and India recently issued a joint statement that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade (interim agreement). Both countries decided to address non-tariff barriers affecting bilateral trade.

After a phone call between Prime Minister Narendra Modi and US President Donald Trump, the announcement of the conclusion of negotiations on the much-awaited trade deal was made. The Trump administration had imposed tariffs on major exporters to the US, including India and China. There was a 50 per cent tariff on goods from India entering the United States since August 2025. The tariffs have now been reduced to 18 per cent following the leaders' recent phone call.

- ANI

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Reader Comments

P
Priya S
Good to see the indices in green, but I'm with the analyst who mentioned caution. The gains seem modest, and profit-booking is already happening. The real test will be the Q3 earnings. We need to see strong domestic corporate performance, not just rely on global cues.
V
Vikram M
Finally some relief on the trade front! The US deal was long overdue. This should help sectors like textiles, engineering goods, and pharmaceuticals. A stronger rupee is a double-edged sword though - good for imports but our IT companies might feel the pinch on exports.
S
Sarah B
As an NRI investor, this makes India a more attractive market again. The combination of trade deal clarity and potential for FII return is key. However, the article rightly points out the lack of strong domestic triggers. The budget measures need to translate into growth soon.
R
Rohit P
Sensex at 84k! Who would have thought a few years ago? 🚀 The interim agreement is a smart move. It removes uncertainty, which markets hate. Now, if only the banking sector would pick up, we could see a real bull run. Let's see what the RBI does next.
M
Michael C
While the headline numbers are positive, the gain of just 0.25% after such a significant trade development is telling. It suggests the market had already priced this in, or investors remain wary about the "interim" nature of the deal and the upcoming US elections. Cautious optimism is wise.

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