After the trade deal between India and America, the stock market saw a rise of 2.5 percent on Tuesday. Under this agreement, the reciprocal tariff imposed on US-Indian goods has been reduced from the current 25 percent to 18 percent. Besides, there is also an assurance from the White House that the Russian tariff will also be removed. This means that the 50 percent tariff imposed on India will be reduced to 18 percent.
After this announcement, there was a tremendous increase in the stock market on Tuesday. During the trading session, Sensex rose by 4,205.27 points or 5.14 percent to reach a high of 85,871.73. Later it closed at 83,739.13 with a gain of 2,072.67 points or 2.54 percent. If we talk about Nifty, it increased by 639.15 points or 2.55 percent and closed at 25,727.55. It gained 1,252.8 points or 4.99 percent during the day and also reached the day's high of 26,341.20 points. Domestic stocks surged, led by Reliance and leading financial companies, registering their best gain in nine months. At the same time, after the India-US trade agreement, a broad rise was seen in export-oriented stocks, due to which an important pressure looming on the market was removed.
Adani Enterprises, Adani Ports & Special Economic Zone and Jio Financial Services were among the top gainers in the Nifty50, rising up to 11 per cent, while Oil & Natural Gas Corporation and ITC fell up to 1 per cent each. The market trend remained positive as around 2911 shares advanced, 435 shares declined and 123 shares remained unchanged. All 16 major sectoral indices were trading in the green. Strong buying was also seen in the broad market, due to which the Nifty Small-Cap100 and Mid-Cap100 indices registered an increase of up to 3.5 percent.
1) India-US Trade Deal: Trump said on Monday that America has signed a trade agreement with India, under which the tariff on Indian exports to America will be reduced from 50 percent to 18 percent. He announced this decision on social media after a phone conversation with Prime Minister Narendra Modi.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said that the dramatic announcement of the much-awaited US-India trade deal and the US decision to reduce tariffs on India from 50 per cent to 18 per cent will prove to be a game changer for the Indian economy and stock markets. The combination of US-India trade deal, EU-India trade deal and growth-oriented budget will boost market sentiments and the economy. Anticipating these developments and keeping them in mind, the stock market will boom.
2) Edge to regional export competitors: India will now face a tariff rate of 18 percent, which is lower than or equal to many regional peers. Bangladesh, Sri Lanka, Taiwan and Vietnam face 20 percent tariffs, while Pakistan, Indonesia, Malaysia, Thailand and the Philippines face 19 percent tariffs. Cambodia also faces a tariff rate of 19 percent.
3) Increase in Rupee: The sharp rise of almost 1.5 per cent in the Indian Rupee during the day on February 3, 2026 has put the currency among those rare sessions in which such appreciation has been seen only 10 times in the last 12 years.
4) Strong Global Signal: In Asian markets, South Korea's Kospi jumped 5 percent. Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were also seen trading at high levels. American markets closed at higher levels on Monday.
5) Fall in crude oil prices: The price of global oil benchmark Brent crude fell 0.51 percent to US $ 65.96 per barrel. Low crude oil prices reduce inflationary pressure and improve India's trade balance, thereby supporting stock markets.
Due to this boom in the stock market, investors got huge profits. The profit and loss of investors depends on the market cap of BSE. If we look at the figures, the market cap of BSE was seen at Rs 4,55,03,877.32 crore on Monday. Which increased to Rs 4,67,14,754.77 crore on Tuesday. This means that on Tuesday a rise of Rs 12,10,877.45 crore was seen in the stock market. Experts say that the stock market may see more growth in the coming days. If we talk about the rise of both the days, then stock market investors have made a profit of Rs 16.60 lakh crore.
