Market Euphoria: Sensex Soars Past 2,300 Points, Nifty Rallies Big

Indian equity benchmarks Sensex and Nifty 50 look set for a strong opening on Tuesday after GIFT Nifty surged sharply. The rally followed US President Donald Trump’s announcement that India and the United States agreed on a trade deal after his discussion with Prime Minister Narendra Modi.

The deal lifted global risk sentiment and pushed Asian markets higher, while US stocks closed in the green overnight, led by technology shares. Market experts say equities often price in economic benefits early, which signals a positive start for Dalal Street. Analysts expect a gap-up opening and believe Nifty 50 may soon test the 25,500 level. They also recommend tracking export-focused sectors such as pharma, IT, auto, textiles, and gems and jewellery, which could benefit from lower tariffs.

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Details of the India-US Trade Deal

Trump announced that the US will waive the reciprocal 25% tariff imposed on India over Russian crude purchases and cut tariffs on Indian goods from 25% to 18%. Once implemented, overall US tariffs on India could drop from 50% to 18%. He also said India will reduce tariffs and non-tariff barriers on US products to zero. Investors see the agreement as a major positive for export-driven stocks because it improves trade relations and reduces cost pressures.

GIFT Nifty traded near 25,939 early Tuesday, showing a premium of about 797 points over the previous Nifty futures close. The sharp premium points to a strong gap-up start, and traders now watch whether Sensex and Nifty can hit fresh record highs. On Monday, domestic markets had already posted solid gains. Sensex jumped 943.52 points to close at 81,666.46, while Nifty 50 climbed 262.95 points to settle at 25,088.40. Despite the optimism, some risks remain. Analysts highlight mixed corporate earnings this season and await clarity on India’s reported plan to purchase $500 billion worth of US goods under the agreement.

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