Stock markets cheer India-US trade deal: Sensex, Nifty surge 2.5 pc

Stock market benchmark indices Sensex and Nifty ended 2.5 per cent higher on Tuesday after India and the US agreed to a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18 per cent. After starting the trade on a buoyant note, the 30-share BSE Sensex further jumped 4,205.27 points or 5.14 per cent to hit the day's high of 85,871.73. It later ended at 83,739.13, up 2,072.67 points or 2.54 per cent. NSE Nifty zoomed 639.15 points or 2.55 per cent to settle at 25,727.55. During the day, it surged 1,252.8 points or 4.99 per cent to 26,341.20.
Vinod Nair, Head of Research, Geojit Investments Limited, said,"The reduction of US tariffs on Indian goods from 50 per cent to 18 per cent enhances India's competitive position among emerging markets and bolsters the outlook for export-oriented sectors with high US exposure, such as textiles, aquaculture, gems and pharmaceuticals, which were
supported in the 2026 Union Budget."
The Indian currency posted its best single-day gain since December 2018. The rupee strengthened by 1.36% to close at 90.2650 against the US dollar, compared with its previous close of 91.5125. A stronger rupee helped improve market confidence, as it reduced concerns around foreign fund outflows and import-related pressures. The rise in the currency also raised hopes of fresh foreign institutional investor inflows into Indian equities.
The gems and jewellery industry on Tuesday welcomed the landmark India-US trade agreement and the reduction of US tariffs to 18 per cent, saying this will enhance trade flows, rebuild confidence, and deliver a strong sector-wide boost, the Gem and Jewellery Export Promotion Council (GJEPC) chairman Kirit Bhansali said.