Stock Market News Today: Indian stock markets witnessed one of their biggest single-day rallies in years on Tuesday, riding on strong optimism after India and
the US announced a long-awaited trade deal. The Sensex jumped nearly 3,500 points, or 4.4%, to around 85,300, while the Nifty 50 surged about 1,200 points, or 4.7%, crossing the 26,300 mark in early trade. The broader market also joined the rally, rising more than 3%.
Rs 13 Lakh Crore Added to Investor Wealth in Minutes
The sharp surge created massive wealth for investors. Within the first 15 minutes of trading, the total market value of BSE-listed companies rose by about Rs 13 lakh crore.
India-US Trade Deal News Live Updates
The overall market capitalisation jumped to around Rs 468 lakh crore, reflecting the strength of buying across sectors.
Why Is the Stock Market Rallying So Hard?
1) India-US Trade Deal Boosts Sentiment
The biggest trigger behind the rally was the India-US trade deal. Under the agreement, the US will cut tariffs on Indian goods to 18%, down sharply from the earlier 50%. India will also reduce tariffs and non-tariff barriers on several American products.
For markets, this removes a major uncertainty that had kept foreign investors cautious for months and dragged stocks lower.
2) FIIs Rush to Cover Short Positions
Foreign investors had built heavy short positions in Indian stocks. With the sudden positive news, traders rushed to cover their shorts, leading to sharp buying. Analysts estimate nearly 90% of short positions were unwound, adding fuel to the rally.
3) Rupee Strengthens, Improves Confidence
The Indian rupee opened stronger at around 90.40, easing pressure from global volatility. A stronger currency improves investor confidence and supports foreign inflows into equities.
4) Budget Optimism Adds Support
The Union Budget 2026 also played a role. The government’s push on capital expenditure has raised hopes of better earnings growth and stronger order flows across sectors.
Stocks That Led the Rally
Heavyweight stocks powered the surge:
- Reliance Industries rose nearly 4%
- Adani Ports jumped around 8%
- HDFC Bank, ICICI Bank, L&T, Bajaj Finance, Infosys and Eternal gained up to 5%
Strong buying in these frontline stocks gave a big boost to benchmark indices.
Markets Recover After Months of Weakness
Markets had struggled in recent months, with the Nifty losing over 1,000 points at its worst in January as foreign investors sold heavily. The trade deal has now changed the mood, bringing investors back into the market.
Experts believe the combination of the India-US trade deal, potential EU-India trade agreement, and growth-focused Budget could revive market confidence and economic momentum.
