India–US trade deal boosts markets: Investors get richer by Rs 12.10 lakh crore – The Times of India
Stock investors became richer by Rs 12.10 lakh crore on Tuesday as benchmark equity indices staged a sharp rally, buoyed by optimism over the India–US trade deal that lowered tariff uncertainty and improved sentiment across global and domestic markets.The 30-share BSE Sensex closed at 83,739.13, up 2,072.67 points or 2.54 per cent. The NSE Nifty climbed 639.15 points or 2.55 per cent to settle at 25,727.55.Reflecting the broad-based rally, the total market capitalisation of BSE-listed companies jumped by Rs 12,10,877.45 crore to Rs 4,67,14,754.77 crore (USD 5.16 trillion).
Market participants said that the India–US trade agreement, which reduces reciprocal tariffs on Indian goods to 18 per cent, removed a major overhang for investors. Commenting on the impact of the deal, A Balasubramanian, Managing Director and CEO of Aditya Birla Sun Life AMC Ltd, said, “The India-US trade deal is a decisive win for certainty, removing a key overhang for Indian markets. Coming on the heels of a strong Budget, it materially improves visibility on capital flows, the rupee, and manufacturing investment.”Among Sensex stocks, Adani Ports emerged as the top gainer, jumping 9.12 per cent. Other major gainers included Bajaj Finance, InterGlobe Aviation, Power Grid, Sun Pharma, Bajaj Finserv and Reliance Industries. Tech Mahindra and Bharat Electronics were the only laggards in the 30-share index, according to news agency PTI. The rally was not limited to frontline stocks, as the trade deal sparked strong buying interest in export-oriented sectors such as textiles, leather, gems and jewellery, auto ancillaries, marine exports and specialty chemicals.Highlighting the scale of the move, Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd, said, “Indian equities witnessed one of the biggest single-day gains on Tuesday after India and US announced a long-awaited trade deal, easing tariff-related concerns that have weighed on Indian markets since April 2025.”He added, “Key beneficiaries include auto ancillaries, defence, textiles, EMS, consumer durables, IT services, and utilities, while financials could see second-order gains through improved growth visibility.”Sectorally, all indices ended in the green. The services index rose 4.86 per cent, followed by realty (4.79 per cent), power (4.79 per cent), utilities (3.92 per cent), capital goods (3.71 per cent), industrials (3.44 per cent), consumer discretionary (3.06 per cent), metal (2.85 per cent), healthcare (2.83 per cent) and financial services (2.83 per cent).Explaining the broader macro impact, Vinod Nair, Head of Research at Geojit Investments Limited, said that the rally was driven by both trade optimism and currency strength. “Indian equities experienced a significant rally today, driven by the long-anticipated India–US trade deal and a strengthening rupee, which boosted expectations of renewed FII inflows,” he said.He further highlighted, “The reduction of US tariffs on Indian goods from 50% to 18% 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.”Market breadth remained strong, with 3,304 stocks advancing on the BSE, while 981 declined and 137 remained unchanged.The positive momentum was also reflected in the currency market, with the rupee appreciating sharply to a three-week high of 90.25 against the US dollar. Explaining the currency movement, Jateen Trivedi, VP, Research Analyst (Commodity and Currency) at LKP Securities, said, “Rupee traded sharply stronger, appreciating by Rs 1.28 or nearly 1.40% following the US-India trade deal announcement.”He added, “The agreement has significantly improved sentiment, as expectations of stronger trade flows and potential FII inflows have boosted confidence in the domestic currency.”Looking ahead, analysts believe that the investor focus will shift to corporate earnings. Vinod Nair said, “Overall market sentiment has turned decisively positive, with global trade risks easing and moderation in the US-Iran conflict. Going forward the markets could focus more on the ongoing Q3 corporate results with a positive bias, because of potential future earnings upgrades led by reduction in tariff risk.”