MUMBAI, India — Indian equity markets rallied sharply on Tuesday after the long-awaited India–U.S. trade deal was finalized, lifting investor sentiment and triggering broad-based buying across sectors.
Both benchmark indices closed with strong gains, reflecting optimism across Dalal Street. The Sensex surged 2,072.67 points, or 2.54 percent, to settle at 83,739.13, while the Nifty climbed 639.15 points, or 2.55 percent, to close at 25,727.55.
Analysts said the market’s key support zone now lies in the 25,500–25,600 range for the Nifty, while the 25,900–26,000 level is seen as a major psychological and supply resistance area.
The rally followed an announcement by U.S. President Donald Trump that the agreement would reduce reciprocal tariffs on Indian goods to 18 percent, a move widely seen as supportive of Indian exporters and overall economic growth.
Heavyweight stocks led the advance on the Sensex, with strong gains seen in Adani Ports, Bajaj Finance, IndiGo and Power Grid. Tech Mahindra and Bharat Electronics Limited were the only stocks to close in negative territory.
Gains were broad-based, with all sectoral indices ending the session higher. The Nifty Realty index was the top performer, rising more than 4 percent. Chemicals, pharmaceuticals and consumer durables also saw robust buying interest, with their respective indices climbing over 3 percent each.
The broader market mirrored the strength in benchmark indices. The Nifty Midcap 100 index rose 2.84 percent, while the Nifty Smallcap 100 index advanced 2.82 percent.
Market participants said the strong performance reflected renewed confidence driven by improved trade prospects and expectations of stronger foreign investor participation.
“Indian equities witnessed a strong rally today, driven by the long-anticipated India–U.S. trade deal and a strengthening rupee, which has boosted expectations of renewed foreign institutional investor inflows,” a market expert said.
Meanwhile, the rupee posted a sharp appreciation, strengthening by Rs 1.28, or nearly 1.40 percent, following the trade deal announcement. The move marked the currency’s best single-day gain since December 2018. (Source: IANS)
