Nifty 50 Sensex Today: Indian stock markets rallied sharply after the India-US trade deal cut tariffs to 18%, boosting investor confidence, lifting Sensex and Nifty, and strengthening the rupee.
The BSE Sensex jumped more than 3,000 points in early deals, while the NSE Nifty50 climbed sharply, signaling strong risk appetite among investors. (File Photo)
Indian financial markets experienced a powerful turnaround on Tuesday as the announcement of a long-awaited India-US trade deal sparked a broad surge in shares and lifted investor confidence. Following sharp losses earlier in the week after the Union Budget, stocks rallied as traders welcomed a major reduction in tariffs between the world’s two largest democracies.
The BSE Sensex jumped more than 3,000 points in early deals, while the NSE Nifty50 climbed sharply, signaling strong risk appetite among investors. Global markets also reflected renewed optimism after US President Donald Trump confirmed that a tariff agreement had been reached with India.
The deal will cut tariffs on Indian goods to 18%, down from punitive levels earlier imposed, which had weighed heavily on exporters and market sentiment.
Investors had been on edge after months of tariff tensions between the United States and India. Last year, the US slapped steep duties on Indian exports, severely hurting labour-intensive sectors and contributing to market volatility.
The new agreement eases these barriers, improving prospects for export-oriented industries such as textiles, engineering, and seafood, and restoring confidence among foreign portfolio investors who had largely stayed on the sidelines.
Just days earlier, Indian markets had fallen sharply following the 2026 Union Budget, which included changes to transaction taxes. The unexpected moves spooked traders and erased nearly ₹10 lakh crore in investor wealth as indices sank to multi-session lows.
The dramatic shift on Tuesday, however, showed how much influence trade policy can have on market psychology. After opening with gains, benchmarks pared some early highs but remained significantly above recent closing levels.
At the open, the Sensex surged over 3,600 points, crossing key psychological levels before settling with strong gains. Similarly, the Nifty50 climbed more than 1,200 points early in the session.
By mid-morning, although some gains eased, the upside momentum remained clear as investors priced in improved trade prospects.
The Indian rupee strengthened, appreciating against the US dollar amidst the rally. A stronger currency helps reduce import costs and can positively affect inflation expectations, further boosting market sentiment.
In bond markets, yields eased slightly as traders weighed the impact of improved trade flows on economic growth.
For traders and long-term investors alike, the renewed optimism around trade ties with the US means more stable market conditions and fewer macroeconomic headwinds. With both the India-US and India-EU trade frameworks progressing, India’s position as a key global market is gaining traction.
As markets digest this major development, analysts say focus will now shift to corporate earnings, global cues, and how swiftly trade benefits are realised on the ground.
Conclusion: The announcement of a landmark India-US trade deal triggered one of the most dramatic reversals in recent market history, lifting Indian stocks and reviving investor confidence after recent turbulence. With reduced tariffs and improved export potential, markets expect more growth ahead.
