markets surged on Tuesday as investors welcomed the long-awaited India–US trade agreement, sparking strong buying across most sectors and lifting overall market sentiment.
The BSE Sensex jumped over 2,000 points, while the Nifty 50 climbed close to 3%, supported by broad-based participation. Early signals from Gift Nifty had indicated a positive opening, but the rally gathered pace as the session progressed, driven by heavyweight stocks and renewed foreign inflows.
Export-linked sectors emerged as the biggest winners. Stocks in metals, engineering, automobiles and information technology rallied sharply, benefiting from the announcement that the US will cut tariffs on Indian goods to 18% from earlier levels of around 50%. Banking stocks also saw strong buying, with large private lenders and PSU banks gaining as improved trade prospects lifted growth expectations.
Among index heavyweights, oil and gas majors and infrastructure stocks advanced on hopes of higher global demand and improved investment sentiment. The positive momentum was further supported by a stronger rupee, which appreciated more than 1% against the US dollar, signalling renewed confidence among overseas investors.
However, not all stocks joined the rally. FMCG and pharmaceutical stocks underperformed, with investors turning cautious on defensive sectors amid the risk-on mood. Select consumer staples and healthcare counters slipped or remained range-bound as traders rotated funds into cyclical and export-oriented names. A few mid-cap pharma exporters also faced pressure due to concerns over pricing and regulatory costs.
Market analysts said the trade deal helped remove a key uncertainty that had weighed on Indian equities in recent weeks, encouraging foreign institutional investors to return to the market. Improved clarity on tariffs and trade rules is expected to support corporate earnings, particularly for export-driven industries.
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