Mumbai: Indian equity markets started Tuesday’s session with a powerful jump as investors reacted positively to the newly announced trade agreement between India and the United States. The landmark deal lifted overall market sentiment, triggering strong buying across large-cap, mid-cap, and small-cap stocks.
In early trade, benchmark indices posted sharp gains. The Sensex surged close to 3 per cent to move above the 84,000 mark, while the Nifty climbed nearly 750 points to trade well past 25,800. The sharp rise reflected renewed confidence among investors following clarity on trade tariffs and global economic ties.
Market enthusiasm was driven by the decision to lower reciprocal tariffs on Indian exports to the US. Under the new agreement, duties have been reduced from 25 per cent to 18 per cent, offering immediate relief to Indian exporters. Additionally, the removal of the extra duty linked to Russian crude purchases further eased concerns for energy-related businesses.
US President Donald Trump confirmed that the agreement would come into force immediately after his phone conversation with Prime Minister Narendra Modi. The announcement reassured investors that the policy shift would have a direct and swift impact on trade flows.
The rally was broad-based, extending beyond heavyweight stocks. Mid-sized and smaller companies also witnessed aggressive buying, indicating strong confidence across the wider market rather than limited interest in a few select stocks.
Sector-wise, real estate shares led the rally, followed by strong gains in automobile, consumer goods, and technology stocks. Banking, financial services, telecom, and capital goods stocks also traded firmly, adding to the overall momentum.
