India-U.S. deal sparks nifty jumps to 4.8%, sensex surges 3,656 points

The domestic equity markets opened with a historic surge on Tuesday, fueled by upbeat global cues following the announcement of a key India-US trade deal. 

Benchmark indices witnessed record gains at the opening bell, reflecting strong investor optimism across sectors. The Nifty 50 jumped 1,219.65 points, or 4.86%, to open at 26,308.05, while the BSE Sensex surged 3,656.74 points, or 4.48%, to 85,323.20.

Nifty, Sensex Soar on Trade Deal Optimism

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, termed the US-India trade deal a “game changer” for the Indian economy and stock markets. The deal includes a reduction in US tariffs on Indian goods from 50% to 18%, boosting exports and strengthening the rupee. He added that corporate earnings could accelerate to 16-18% in FY27, while the broader economic growth may rise to 7.5%. Analysts noted that large-cap stocks, particularly in banking, IT, telecom, and capital goods, could outperform, aided by FII inflows and short-covering.

Sectoral Gains and Global Ripple Effects

Across sectors, Nifty IT rose 5.85%, Nifty Auto jumped 5%, Nifty Pharma climbed 4.27%, and Nifty Metal surged 3.88%. Vedanta and Hindustan Zinc gained 3.38% and 2.8%, respectively. Asian markets also opened strongly, with Japan’s Nikkei 225 up over 3% and South Korea’s KOSPI rising 4%. The deal overshadowed recent post-Budget volatility, with markets shrugging off derivative STT hikes. 

Also Read: ‘Historic’: BJP VP Jay Panda hails breakthrough in India-US trade talks

Analysts said the agreement signals the start of a broader rally, taking Dalal Street to record highs while boosting investor confidence across market caps.