Indian equity benchmarks witnessed a blockbuster session on Tuesday. Fuelled by a landmark US-India trade agreement, investor sentiment improved sharply and both benchmarks, Sensex and Nifty, zoomed ahead and created a record making rally in today’s trade.
The BSE Sensex skyrocketed more than 2,000 points and closed above 83,700, while the NSE Nifty50 ascended over 600 points and settled for the session just over 25,700. Markets surged in pre-opening trade this morning after Washington announced it would cut tariffs on Indian goods to 18 per cent from 50 per cent. The breakthrough deal has triggered one of the strongest rallies seen in recent months, with equities gaining momentum right from the opening bell and sustaining strength through the session.
On the 30-share Sensex, BEL and Tech M settled as the only stocks in red. Meanwhile, Adani Ports, Bajaj Finance, IndiGo, PowerGrid, and Sun Pharma ended the day in green.
In the broader markets, the Nifty Microcap250 soared 3.72 per cent. Sectorally, the Realty and Chemicals indices rallied 4.79 per cent and 3.84 per cent respectively.
Trade Deal Ignites Market Euphoria
Both benchmark indices were trading nearly 3 per cent higher during the afternoon session on Tuesday as investors cheered the tariff reduction announcement.
After opening on a buoyant note, the Sensex soared 4,205.27 points, or 5.14 per cent, to hit an intra-day high of 85,871.73. The Nifty surged 1,252.8 points, or 4.99 per cent, to touch 26,341.20.
The sweeping rally followed comments by US President Donald Trump on Monday after a phone conversation with Prime Minister Narendra Modi. Trump said the US would reduce the reciprocal tariff on Indian goods to 18 per cent, a move widely seen as restoring predictability for exporters and corporate planners.
Structural Boost For Export Competitiveness
Market participants said the clarity on tariff levels could significantly improve earnings visibility for export-heavy sectors.
“The newly announced India-US trade agreement is a constructive development for India’s capital markets, overall trade, and long-term economic prospects. By reducing the effective US tariff on Indian goods to 18 per cent, this deal restores predictability for Indian exporters,” said Mahavir Lunawat, CMD, Pantomath Capital.
“The clearer, lower tariff regime enhances competitiveness for India’s export-oriented sectors – such as textiles, engineering goods, chemicals, and auto components – making Indian products more price-competitive in the US market and supporting export growth,” he added.
Previous Session Recap
On Monday, the Sensex had jumped 943.52 points, or 1.17 per cent, to settle at 81,666.46, while the Nifty advanced 262.95 points, or 1.06 per cent, to close at 25,088.40.
With the tariff cut dramatically altering the near-term outlook, markets have entered Tuesday’s session with strong momentum. Traders will watch whether the rally sustains through the day as investors continue to price in the positive implications of the India-US trade breakthrough.
