Markets continue to trade higher in India-US trade deal euphoria

Benchmarks continued to trade higher in late afternoon session amid India-US trade deal euphoria. The U.S. President Donald Trump announced an immediate reduction in reciprocal tariffs on Indian goods to 18% from 25%. Besides, the additional tariffs linked with Russian oil purchases will be dropped as part of the agreement. Meanwhile, the Chairman of Economic Advisory Council to the Prime Minister has said that the Indo-US trade deal will boost FDI as well as portfolio investments in the country, having a positive impact on the value of rupee.

On the global front, Asian equity markets were trading mostly in green as precious metals clawed back some ground after a historic sell-off. European equity markets were trading higher as commodity markets stabilized, trade and geopolitical tensions eased, and the U.S. Congress prepared to vote on a spending bill to end the government shutdown.

The BSE Sensex is currently trading at 83895.30, up by 2228.84 points or 2.73% after trading in a range of 83501.22 and 85871.73. All 30 stocks were advancing on the index.

The top gaining sectoral indices on the BSE were Realty up by 4.99%, Power up by 4.31%, Utilities up by 4.05%, Capital Goods up by 4.04% and Industrials up by 3.62%. There were no losers on BSE sectoral index.

The top gainers on the Sensex were Adani Ports & SEZ up by 9.10%, Bajaj Finance up by 6.84%, Interglobe Aviation up by 5.17%, Bajaj Finserv up by 4.68% and Power Grid Corporation up by 4.68%.

Meanwhile, Financial Services Secretary M Nagaraju has said that the Finance Ministry is actively conducting inter-ministerial discussions to enhance foreign direct investment (FDI) in public sector banks (PSBs) from the current 20 per cent to 49 per cent, to strengthen their capital base. 

Nagaraju said the FDI limit in PSBs and private sector banks is 20 per cent and 74 per cent, respectively. In case of private sector banks, up to 49 per cent of FDI is allowed through the automatic route, and beyond 49 per cent and up to 74 per cent, the government route is applicable. Even though the number of shares held by the union government in 12 PSBs has not declined since 2020, the respective percentage of its shareholding has declined in some of these banks due to the raising of capital through the issuance of fresh shares by banks. 

He further said that all the PSBs put together have raised about Rs 45,000 crore through various means, including qualified institutional placement (QIP) and offer for sale. He said banks would be mobilising about Rs 45,000-50,000 crore in the next financial year as well, given their growth trajectory. Providing an outlook for growth, he said, public sector banks are expected to double their asset size in the next five years. He said the decision was taken in consultation with the banks last year, and added that the combined assets of these banks were around Rs 261 lakh crore at the end of September 2025.

The CNX Nifty is currently trading at 25766.50, up by 678.10 points or 2.70% after trading in a range of 25641.30 and 26341.20. All 50 stocks were advancing on the index.

The top gainers on Nifty were Adani Enterprises up by 10.06%, Adani Ports & SEZ up by 8.84%, Jio Financial Services up by 8.23%, Bajaj Finance up by 6.56% and Interglobe Aviation up by 5.19%.

Asian equity markets were trading mostly in green; Nikkei 225 surged 2078.82 points or 3.8% to 54,734.00, Taiwan Weighted added 571.33 points or 1.77% to 32,195.36, KOSPI increased 338.41 points or 6.4% to 5,288.08, Straits Times rose 53.65 points or 1.08% to 4,945.92, Jakarta Composite gained 152.85 points or 1.89% to 8,075.58 and Shanghai Composite strengthened 51.99 points or 1.28% to 4,067.74, while Hang Seng declined 3.57 points or 0.01% to 26,772.00.

European equity markets were trading higher; UK’s FTSE 100 increased 17.9 points or 0.17% to 10,359.46, France’s CAC rose 45.33 points or 0.55% to 8,226.50 and Germany’s DAX gained 341.58 points or 1.38% to 25,139.10.