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Sensex Soars 2,073 Points, Rupee Jumps 1.4% on India-US Trade Deal

Indian stock markets witnessed a massive rally with the Sensex surging over 2,070 points and the Nifty gaining over 639 points. The surge was driven by the finalization of the long-awaited India-US trade deal, which lowered reciprocal tariffs. The rupee also strengthened sharply by 1.4%, recording its best single-day gain since December 2018. Market optimism was broad-based, with all sectoral indices closing higher led by realty, and strong participation from mid and small-cap stocks.

Key Points: Sensex Surges 2,073 Pts, Rupee Gains on US Trade Deal

  • Sensex jumps 2,073 points
  • Nifty gains over 639 points
  • Rupee posts best single-day gain since Dec 2018
  • All sectoral indices close higher
  • Rally driven by finalised India-US trade deal
2 min read

Sensex surges 2,073 points, rupee posts best single-day gain since Dec 2018

Indian markets rally as Sensex jumps 2,073 points and the rupee posts its best single-day gain since 2018 after the India-US trade deal is finalized.

"Indian equities experienced a significant rally today, driven by the long‑anticipated India-US trade deal - Expert"

Mumbai, Feb 3

Indian stock markets witnessed a strong rally on Tuesday as investors cheered the finalisation of the long-awaited India-US trade deal.

Both benchmark indices, the Sensex and the Nifty, posted sharp gains -- reflecting positive sentiment across Dalal Street.

By the end of the trading session, the Sensex jumped 2,072.67 points, or 2.54 per cent, to close at 83,739.13.

Meanwhile, the Nifty climbed 639.15 points, or 2.55 per cent, to settle at 25,727.55.

"The key support zone remains at 25,500-25,600 (gap support), while 25,900-26,000 acts as a major psychological and supply resistance area," an analyst stated.

The surge came after US President Donald Trump announced that the agreement would lower reciprocal tariffs on Indian goods to 18 per cent.

The move boosted confidence among market participants, who expect improved trade ties to benefit Indian companies and the broader economy.

Several heavyweight stocks led the rally on the Sensex. Shares of Adani Ports, Bajaj Finance, IndiGo, and PowerGrid recorded strong gains during the day.

On the other hand, Tech Mahindra and Bharat Electronics Limited (BEL) were the only stocks to end in negative territory.

Market optimism was visible across all sectors, as every sectoral index closed higher. The Nifty Realty index was the top performer, rising by more than 4 per cent.

Other sectors such as chemicals, pharmaceuticals, and consumer durables also saw solid buying interest, with their indices jumping over 3 per cent each.

The broader market also participated in the rally. The Nifty MidCap 100 index advanced 2.84 per cent, while the Nifty SmallCap 100 index gained 2.82 per cent.

Analysts said that the strong performance highlighted investor confidence driven by positive developments on the trade front and expectations of improved economic prospects.

"Indian equities experienced a significant rally today, driven by the long‑anticipated India-US trade deal and a strengthening rupee, which boosted expectations of renewed FII inflows," an expert said.

Meanwhile, Rupee traded sharply stronger, appreciating by Rs 1.28 or nearly 1.40 per cent following the US-India trade deal announcement to record its best single-day gain since December 2018.

- IANS

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Reader Comments

P
Priya S
Great to see such a broad-based rally. Realty and mid-caps leading is a sign of strong domestic confidence. But let's see if this is sustained or just a one-day wonder. FIIs need to come back in a big way.
R
Rohit P
Sensex up 2000+ points and rupee gaining 1.4% in a single day? Wah! This is like Diwali coming early for investors. My portfolio is in the green after months. Feeling bullish about the future.
S
Sarah B
As an NRI investor, this is very encouraging. A stable trade relationship with the US is crucial. The rupee gain is significant – makes remittances and future investments more attractive. Good step forward.
K
Karthik V
Positive news, no doubt. But a word of caution for retail investors like me – don't get carried away by this surge. Markets can be volatile. The real test is whether this deal translates to more jobs and growth on the ground for common people.
M
Michael C
Interesting to see Tech Mahindra and BEL in the red on such a big green day. Shows sector-specific rotations are still happening. The broad market participation is the real positive takeaway here.

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