SENSEX surges 2,073 points, NIFTY50 ends above 25,700 as markets post best day in over 14 months on India-US trade deal

The Indian equity benchmarks posted their best single-day performance since November 22, 2024, after the United States and India agreed on 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 on the back of a broad-based buying interest.

The SENSEX climbed 2,073 points to close at 83,739 and the NIFTY50 index jumped 639 points or 2.55% to settle at 25,728.

In a post on his Truth Social platform, Trump said it was “an honor to speak with Prime Minister Modi” and described him as “one of my greatest friends and a powerful and respected leader”. He said the leaders spoke about trade and ending the Russia-Ukraine war.

Trump said India agreed to stop buying Russian oil and instead buy more energy from the United States and potentially Venezuela, which he said would help “END THE WAR in Ukraine”.

He announced that reciprocal tariffs on Indian imports into the US would be cut from 25% to 18%, effective immediately, while India would eliminate tariffs and non-tariff barriers on US products.

“At the request of Prime Minister Modi, effective immediately we agreed to a Trade Deal… This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!” Trump wrote.

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 the 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.

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

Shares of gems and jewellery companies such as Goldiam International, Vaibhav Global, International Gemmological Institute, Rajesh Exports, Sky Gold, Senco Gold, Titan, Shringar House of Mangalsutra, Golkunda Diamonds and Tribhovandas Bhimji Zaveri came under strong buying interest and surged between 3%-20% after India and the United States agreed to a trade deal. 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 the board as all the major sector gauges compiled by the National Stock Exchange ended higher, led by the NIFTY Realty index's 4.8% gain.

NIFTY Auto, Bank, Financial Services, IT, Metal, Pharma, PSU Bank, Private Bank, Healthcare and Consumer Durables indices also rose between 1.5%-3.4%.

Broader markets also witnessed buying interest as the NIFTY Midcap 100 index soared 2.84% and the NIFTY Smallcap 100 index advanced 2.82%.

Adani Enterprises was top gainer in the NIFTY50 index, the stock rose 10.58% to close at ₹2,206 after its profit jumped multifold to ₹5,627 crore in Q3 from ₹58 crore during the same period last year.

Adani Ports advanced 9.19% to close at ₹1,532 after it reported a net profit of ₹3,054 crore in the third quarter of the current financial year (Q3FY26), marking an increase of 21.2% from ₹2,520 crore in the same period last year.

Jio Financial Services, Bajaj Finance, IndiGo, Max Healthcare, Power Grid, Sun Pharma and Bajaj Finserv also rose between 4.2%-8.15%.

On the flipside, Tech Mahindra, Bharat Electronics, SBI Life and Nestle India were among the notable laggards in the NIFTY50 index.

The overall market breadth was positive as 3,301 shares ended higher while 981 closed lower on the BSE.