Markets trade with traction after India-US trade deal

Indian equity benchmarks made gap-up opening on Tuesday after the much-awaited trade deal between India and the US was finalised Monday night. US President Donald Trump announced reducing the reciprocal tariff on Indian goods to 18 per cent as India stopping Russian oil purchases. Sensex and Nifty were trading in fine-fettle with gains of over 2.50% each in early deals on account of board-based buying in all the sector indices led by Realty, Capital Goods and Industrials. Some support came as EEPC India welcomed the announcement of a trade deal with the US, and said it could significantly boost engineering shipments. Traders took note of S&P Global Ratings’ statement that it is confident that the government will achieve its 4.3 per cent fiscal deficit target for FY27 despite a projected dip in goods and services tax (GST) receipts following the rate streamlining in September 2025.

On the global front, Asian markets were trading firm, following the broadly positive cues from Wall Street overnight, as traders cheer signs of de-escalating tensions between the U.S. and Iran amid reports Iran is prepared to negotiate with the U.S. over its nuclear program. Back home, power stocks were in focus power consumption in India rose 3.8 per cent to 142.74 billion units in January from 132.5 BUs a year ago, amid increased usage of heating appliances during the intense cold in many parts of north India.  

The BSE Sensex is currently trading at 83716.56, up by 2050.10 points or 2.51% after trading in a range of 83595.60 and 85871.73. There were 29 stocks advancing against 1 stock declining on the index.

The top gaining sectoral indices on the BSE were Realty up by 4.13%, Capital Goods up by 3.63%, Industrials up by 3.40%, Consumer Durables up by 3.33% and Power up by 3.23%, while there was no loser on the BSE sectoral front.

The top gainers on the Sensex were Adani Ports & SEZ up by 7.39%, Interglobe Aviation up by 5.16%, Bajaj Finserv up by 4.96%, Bajaj Finance up by 4.90% and Eternal up by 4.27%. On the flip side, ITC down by 0.41% was the only loser.

Meanwhile, in a major breakthrough for India’s exports, US President Donald Trump, after a phone conversation with Prime Minister Narendra Modi, has said that India and the US have agreed to a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from current 25 per cent. Trump claimed India will move forward to reduce ‘tariffs and non-tariff barriers’ against the US to zero. There is no immediate reaction from India.

Trump said Modi also committed to ‘buy American’ at a much higher level, in addition to over $500 billion dollars of US energy, technology, agricultural, coal, and many other products. He said ‘Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that get things done something that cannot be said for most’.

Trump said Modi and he discussed ending the war between Russia and Ukraine. He added ‘Modi agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela’. He noted ‘This will help end the war in Ukraine, which is taking place right now, with thousands of people dying each and every week’.

The CNX Nifty is currently trading at 25776.40, up by 688.00 points or 2.74% after trading in a range of 25675.15 and 26341.20. There were 47 stocks advancing against 3 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 9.97%, Adani Ports & SEZ up by 7.46%, JIO Financial Services up by 6.51%, Bajaj Finance up by 5.21% and Interglobe Aviation up by 4.82%. On the flip side, ONGC down by 1.22%, Coal India down by 0.32% and ITC down by 0.13% were the few losers.

All Asian markets were trading higher; Nikkei 225 surged 1944.82 points or 3.69% to 54,600.00, Taiwan Weighted jumped 393.75 points or 1.25% to 32,017.78, KOSPI rose 266.84 points or 5.39% to 5,216.51, Jakarta Composite gained 106.14 points or 1.34% to 8,028.87, Straits Times increased 43.43 points or 0.89% to 4,935.70, Hang Seng advanced 41.43 points or 0.15% to 26,817.00 and Shanghai Composite was up by 15.32 points or 0.38% to 4,031.07.