(File Photo/IANS)
Mumbai, February 3 (IANS) Indian stock markets witnessed a strong rally on Tuesday as investors cheered the finalisation of the long-awaited India–US trade deal.
Both benchmark indices, the Sensex and the Nifty, posted sharp gains -- reflecting positive sentiment across Dalal Street.
By the end of the trading session, the Sensex jumped 2,072.67 points, or 2.54 per cent, to close at 83,739.13.
Meanwhile, the Nifty climbed 639.15 points, or 2.55 per cent, to settle at 25,727.55.
“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 stated.
The surge came after US President Donald Trump announced that the agreement would lower reciprocal tariffs on Indian goods to 18 per cent.
The move boosted confidence among market participants, who expect improved trade ties to benefit Indian companies and the broader economy.
Several heavyweight stocks led the rally on the Sensex. Shares of Adani Ports, Bajaj Finance, IndiGo, and PowerGrid recorded strong gains during the day.
On the other hand, Tech Mahindra and Bharat Electronics Limited (BEL) were the only stocks to end in negative territory.
Market optimism was visible across all sectors, as every sectoral index closed higher. The Nifty Realty index was the top performer, rising by more than 4 per cent.
Other sectors such as chemicals, pharmaceuticals, and consumer durables also saw solid buying interest, with their indices jumping over 3 per cent each.
The broader market also participated in the rally. The Nifty MidCap 100 index advanced 2.84 per cent, while the Nifty SmallCap 100 index gained 2.82 per cent.
Analysts said that the strong performance highlighted investor confidence driven by positive developments on the trade front 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.
Meanwhile, Rupee traded sharply stronger, appreciating by Rs 1.28 or nearly 1.40 per cent following the US–India trade deal announcement to record its best single-day gain since December 2018.
