India-US trade deal, stock market: Sensex zooms 2,375 pts, Nifty vaults past 25,800 mark

Domestic equity benchmarks Sensex and Nifty surged in early trade on Tuesday after US President Donald Trump announced a major trade deal between India and the United States (US) on Monday. Under the deal, Trump said the US will cut tariffs on Indian goods to 18% from the earlier 50%.

At 9:15 am, the BSE Sensex jumped 2375.07 points, or 2.91%, to 84,041.53. The NSE Nifty advanced 723 points, or 2.88%, to 25,811.40.

Reciprocal tariffs on Indian goods were cut to 18% from 25%, a move that has boosted global risk appetite. The positive external trigger is allowing investors to look beyond the recent post-Budget turbulence. The sharp sell-off after the Union Budget 2026–27, driven by the unexpected hike in securities transaction tax on derivatives, had pushed up trading costs and weighed heavily on F&O-focused and brokerage stocks, said Ponmudi R, CEO of Enrich Money

Among Sensex constituents, Adani Ports surged 7.18% to Rs 1503.60. Bajaj Finance gained 6.59%, while Eternal, Bajaj Finserv and IndiGo rose 5.98%, 4.57% and 4.10%, respectively.

The proposed trade arrangements could act as a strong multi-year trigger for the Indian economy and markets. India’s growth rate could climb to around 7.5% in FY27, supported by a likely rise in exports to the US. Corporate earnings, which are already showing early signs of recovery, may gather pace and expand in the range of 16–18% in FY27, while the rupee is expected to strengthen sharply, said VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.

Asian markets traded mostly higher. At last check, Japan’s Nikkei 225 surged 2.94% to 54,201.01, while South Korea’s Kospi advanced 4.32% to 5,163.38. Hong Kong’s Hang Seng Index was down 0.32% to 26,689.33.

Wall Street ended higher overnight, with all three major indices closed in the green. The S&P 500 gained 0.54% to close at 6,976.44, while the Dow Jones Industrial Average jumped 1.05% to 49,407.66. The Nasdaq Composite climbed 0.56% to settle at 23,592.11.

Meanwhile, on Monday, the Sensex advanced 943.52 points, or 1.17%, to end at 81,666.46, while the Nifty climbed 262.95 points, or 1.06%, to settle at 25,088.40.

Vijayakumar said that the combined impact of a US–India trade deal, a potential EU–India agreement and a growth-focused Budget could significantly lift market sentiment and revive risk-taking appetite in the economy. The stock market, he said, is likely to start factoring in these developments in advance.

“As markets gradually absorb the Budget impact, yesterday’s rebound highlighted selective value buying in infrastructure, defence, and large-cap stocks. Overall, the trade deal offers a strong near-term sentiment boost, particularly for export-oriented and manufacturing sectors, while continued government focus on capex provides a steady underlying support for the broader market,” Ponmudi said.

On the technical front, Ponmudi said that the Nifty 50 has clawed back part of its post-Budget losses and is now testing the crucial 200-day exponential moving average around the 25,150–25,200 zone, which remains a key near-term pivot. Momentum indicators are showing early signs of stabilisation, with the RSI moving out of oversold territory and the MACD beginning to hint at a possible bullish crossover.

“Immediate support is placed in the 24,900–25,000 psychological zone, expected to act as a near-term cushion. On the upside, the key resistance lies near 25,500, a prior supply area, and a sustained move above this level could open the door for a further recovery towards 25,700 and higher,” Ponmudi added.