Stock market benchmark indices Sensex and Nifty closed with a gain of 2.5 percent on Tuesday after India and the US agreed on a trade deal. After opening trade on a positive note, the 30-share BSE Sensex rose 4,205.27 points or 5.14 per cent to the day’s high of 85,871.73. It later closed at 83,739.13, up 2,072.67 points or 2.54 percent.
The 50-share NSE Nifty closed at 25,727.55, up 639.15 points or 2.55 per cent. It rose 1,252.8 points or 4.99 percent during the day to reach 26,341.20.
Rupee strengthened against dollar
The Indian rupee on Tuesday closed at 90.27 (provisional), up 122 paise or 1.33 per cent against the US dollar and emerged the best performing currency among the Asian currencies.
America reduced the tariff on India to 18%
US President Donald Trump said after a phone conversation with Prime Minister Narendra Modi on Monday that India and America have agreed on a trade deal. Under this, Washington will reduce the reciprocal duty on Indian goods from the current 25 percent to 18 percent.
Condition of Sensex companies
Among the 30 Sensex companies, shares of Adani Ports rose by 9.12 percent. Other major winners included Bajaj Finance, InterGlobe Aviation, Power Grid, Sun Pharma, Bajaj Finserv and Reliance Industries. Only Tech Mahindra and Bharat Electronics lagged behind in this matter. The trade deal also led to a sharp rise in textile, leather, gems and jewellery, seafood exports and specialty chemicals stocks.
Foreign investors expected to return to Indian market
Vinod Nair, Head of Research, Geojit Investments Ltd, said Indian stock markets witnessed significant gains today, driven by the much-awaited India-US trade agreement and strengthening rupee, raising hopes of fresh inflows from foreign investors.
He said reducing US tariffs on Indian goods from 50 per cent to 18 per cent strengthens India’s competitive position in emerging markets and improves prospects for export-oriented sectors like textiles, fisheries, gems and pharmaceuticals, which have close ties with the US and were given support in the 2026 Union Budget.
There was a rise in European markets
In Asian markets, South Korea’s Kospi index rose sharply and jumped nearly 7 percent. Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index also closed higher. European markets were trading in positive territory. American markets closed with gains on Monday.
The price of Brent crude fell to US $ 65.87 per barrel.
Global oil benchmark Brent crude fell 0.65 percent to US$65.87 per barrel. According to exchange data, foreign institutional investors sold shares worth Rs 1,832.46 crore on Monday, while domestic institutional investors (DIIs) bought shares worth Rs 2,446.33 crore. On Monday, the Sensex closed at 81,666.46, up 943.52 points or 1.17 per cent. Nifty ended 262.95 points or 1.06 per cent higher at 25,088.40.
