Tue Feb 03 05:32:56 UTC 2026: # India-U.S. Trade Deal Sparks Stock Market Surge

The Story:
Indian stock markets experienced a significant surge on February 3, 2026, following the announcement of a trade deal between India and the U.S. Under the agreement, the U.S. will reduce tariffs on Indian goods from 25% to 18%. This news triggered a rally in benchmark indices, with the Sensex and Nifty both experiencing substantial gains in early trading. The deal is viewed as a major boost for export-oriented sectors, particularly textiles, apparel, leather, and marine, which have been facing challenges due to high U.S. tariffs.

Key Points:

  • The Sensex jumped 3,656.74 points in early trading, reaching 85,323.20, and later extended gains to 85,871.73, a 5.14% increase.
  • The Nifty surged 1,219.65 points initially, hitting 26,308.05, and further climbed to 26,341.20, a 4.99% gain.
  • The U.S. will reduce reciprocal tariffs on Indian goods from 25% to 18%.
  • Adani Ports, Bajaj Finance, Eternal, Bajaj Finserv, InterGlobe Aviation, and Reliance Industries saw significant gains, ranging from 3.7% to 7.2%.
  • Textile and leather stocks surged as much as 20%.
  • Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,832.46 crore, while Domestic Institutional Investors (DIIs) bought stocks worth ₹2,446.33 crore.
  • India’s merchandise exports to the US declined 1.83% to $6.88 billion in December 2025 due to high tariffs.

Key Takeaways:

  • The U.S.-India trade deal is a significant positive catalyst for the Indian economy and stock market.
  • The reduction in U.S. tariffs is expected to boost export-oriented sectors, particularly textiles, apparel, leather, and marine.
  • Market sentiment has improved significantly, with analysts predicting further growth.
  • While FIIs offloaded equities, DIIs stepped in, indicating confidence in the Indian market.
  • The trade deal, coupled with other economic factors, is expected to drive economic growth and market performance.

Impact Analysis:

The India-U.S. trade deal has far-reaching implications for both economies. The reduction in tariffs is expected to improve the competitiveness of Indian goods in the U.S. market, leading to increased exports and job creation in India. The deal also sends a positive signal to global investors, potentially attracting more foreign investment into India. This agreement is likely to foster stronger economic ties between India and the U.S., promoting bilateral trade and cooperation in various sectors. The long-term impact could include sustained economic growth, enhanced industrial capabilities, and improved living standards in India.

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