NIFTY50 skyrockets above 26,300, SENSEX surges 4,205 points as India-US agree on trade deal

The Indian equity benchmarks staged a strong gap-up opening on Tuesday, February 3, as investor sentiment turned bullish after India and the United States agreed to a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18% from the current 25%.

The SENSEX surged as much as 4,205 points to hit an intraday high of 85,871.73, and the NIFTY50 index skyrocketed as much as 1,253 points to hit an intraday high of 26,341.20.

Market participants gave a thumbs up to the much-awaited deal as Nilesh Shah of Kotak AMC said that the deal removes a hanging sword over rupee, equity and rates market.

“India US trade deal has gone through ups and downs like a roller coaster. While devil is in the details, it removes a hanging sword over rupee, equity and rates market. Let us hope that it is a win-win deal for both the countries as they have lot to gain through cooperation,” said Nilesh Shah, MD, Kotak Mahindra AMC, said.

As of 9:51 am, markets came off intraday highs and the SENSEX was up 2.8% or 2,284 points at 83,958 and NIFTY50 index advanced 700 points or 2.79% to 25,788.

Sectoral landscape

The measure of banking stocks on the National Stock Exchange, NIFTY Bank index, jumped as much as 2,792 points to hit fresh record high of 61,411.20.

Shares of auto ancillary, textile, seafood, gems and jewellery and other companies with significant exposure to the US markets were trading sharply higher on Tuesday.

Shares of KPR Mill, Gokaldas Exports, Bharat Forge, Sona BLW, Samvardhana Motherson, Arvind, Welspun Living, Apex Frozen Foods, Indo Count, Waaree Energies and Premier Energies surged between 10%-20%.

Buying was visible across board as all the major sector gauges compiled by the NSE were trading higher led by the NIFTY Auto index's over 3.5% gain. NIFTY Realty, Consumer Durables, Bank, Private Bank, IT, Pharma, Realty, Bank and Financial Services indices also rose between 2.5%-4%.

Broader markets were also witnessing buying interest as NIFTY Midcap 100 index rose 3% and NIFTY Smallcap 100 index advanced 2.9%.

NIFTY50 top gainers and losers

Adani Enterprises was top gainer in the NIIFTY50 index, the stock climbed 10% to ₹2,194. Adani Ports, Jio Financial Services, InterGlobe Aviation, Bajaj Finance, Bajaj Finserv, Eternal, Axis Bank and Mahindra & Mahindra also rose between 3.7%-7.5%.

On the flipside, ONGC, Nestle India, ITC and Coal India were among the notable laggards in the NIFTY50 index.

The overall market breadth was extremely positive as 2,534 shares were advancing while 306 were declining on the NSE.