Sensex Jumps Over 2,000 Points After India-US Deal; Rupee Logs Best Day Since 2018

Indian equity markets closed sharply higher on Tuesday, extending a powerful rally as investors welcomed the finalisation of the long-awaited India–US trade deal, which is expected to improve trade prospects and revive foreign investor interest.

Benchmark indices posted broad-based gains through the session. The Sensex rose 2,072.67 points, or 2.54 per cent, to end at 83,739.13, while the Nifty climbed 639.15 points, or 2.55 per cent, to close at 25,727.55.

Market sentiment turned decisively positive after U.S. President Donald Trump announced that reciprocal tariffs on Indian goods would be reduced to 18 per cent, easing a major source of uncertainty that had weighed on equities in recent months.

Technical analysts said momentum remains favourable in the near term. “The key support zone remains at 25,500–25,600 (gap support), while 25,900–26,000 acts as a major psychological and supply resistance area,” an analyst said.

Heavyweight stocks led the rally on the Sensex. Shares of Adani Ports, Bajaj Finance, InterGlobe Aviation (IndiGo) and Power Grid Corporation posted strong gains, reflecting renewed confidence across infrastructure, financials and transport-related counters. Tech Mahindra and Bharat Electronics Limited (BEL) were the only stocks to close in negative territory.

Gains Broad-based

Gains were broad-based across sectors. All sectoral indices ended higher, with the Nifty Realty index emerging as the top performer, rising more than 4 per cent. Chemical, pharmaceutical and consumer durables stocks also saw strong buying interest, with their respective indices advancing over 3 per cent each.

The rally extended beyond frontline stocks into the broader market. The Nifty MidCap 100 index gained 2.84 per cent, while the Nifty SmallCap 100 index rose 2.82 per cent, underscoring improving risk appetite among investors.

Analysts said the market performance reflected growing optimism around the trade outlook and expectations of improved economic prospects. “Indian equities experienced a significant rally today, driven by the long-anticipated India–US trade deal and a strengthening rupee, which boosted expectations of renewed FII inflows,” an expert said.

The currency market mirrored the positive sentiment. The rupee strengthened sharply, appreciating by Rs 1.28, or nearly 1.40 per cent, following the trade deal announcement. The move marked the rupee’s best single-day gain since December 2018.

Market participants said the combination of tariff relief, a firmer currency and expectations of capital inflows could continue to support equities in the near term, even as investors watch global cues and domestic macro developments closely.

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