The Indian markets opened on a strong note on Tuesday, breaking the long lull seen in domestic equities, as global sentiment turned sharply positive following
a landmark deal between India and the United States. The Nifty 50 jumped 5 per cent at the open to 26,341.20, while the Sensex rose 5.14 per cent to 85,871.73. Both indices declined marginally after a record opening but continued to trade in green. Notably, within the first few hours of Tuesday’s session, investors in Indian equities saw their wealth surge by around Rs 13 lakh crore as overall market capitalisation spiked in response to the sharp rally. Markets are reacting to the newly announced India–US trade agreement, which reduces reciprocal tariffs on Indian imports to 18 per cent from the earlier 25 per cent, with the revised rates taking effect immediately. Previously, India faced a combined tariff burden of 50 per cent, including a 25 per cent penalty tied to its purchase of Russian oil. According to the US Embassy, the total applicable tariff has now been brought down to 18 per cent. Among the Nifty 50 sectoral indices, Nifty Realty surged the most, jumping 4.47 per cent, as all sectoral indices traded firmly in the green. Strong gains were also seen in Nifty Consumer Durables, which rose 3.80 per cent, followed by Nifty Chemicals up 3.53 per cent, and Nifty Auto which advanced 3.48 per cent. The Financial Services, Healthcare, and Pharma indices also logged strong gains between 3 per cent and 3.3 per cent, while sectors like IT, Private Bank, Metal, and PSU Bank added between 2 per cent and 2.9 per cent. Even traditionally defensive sectors such as FMCG and Oil & Gas closed higher, ensuring a broad-based rally across the market. Among the Nifty 50 constituents, Adani Enterprises led the rally followed by Adani Ports. Third top gainer in Nifty 50 batch is Jio Financial Services, followed by Bajaj Finance and fifth biggest gainer was InterGlobe Aviation (IndiGo) Indian equities closed higher on Monday after declining at the open. The Nifty and Sensex fell nearly 0.60 per cent during the day but rose more than 1 per cent to end in green and snap a two-day fall. The Nifty ended up 262.95 points, or 1.06 per cent, at 25,088.40. The Sensex ended up 909.11 points, or 1.13 per cent, at 81,632.05. US President Donald Trump agreed to a trade deal with India on Monday night IST, lowering tariffs on Indian exports from 25 per cent to 18 per cent. In a post on Truth Social, Trump wrote, "It was an honour to speak with Prime Minister Modi. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week! Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%." Also, US Ambassador to India, Sergio Gor tweets, "As I have said many times, President Trump genuinely considers Prime Minister Modi a great friend. Thrilled by the news of the trade deal this evening. The relationship between the United States and India has LIMITLESS POTENTIAL!"
