A Landmark Agreement Fuels Market Euphoria
In a stunning turn of events on February 3, 2026, the Indian stock markets erupted in jubilation following the announcement of the India-US Trade Deal. The Sensex skyrocketed over 4,200 points at opening, closing the morning session up by nearly 2,400 points or 3%. Similarly, the Nifty surged 1,252 points initially, maintaining gains of around 700 points. This historic rally, driven by reduced US tariffs on Indian goods from 25% to 18%, underscores the deal's potential to revitalize exports and attract foreign investment amid ongoing global economic recovery.
Why the India-US Trade Deal Matters Now
Timed perfectly after India's recent EU FTA and a stable 2026 Budget, the India-US Trade Deal arrives at a pivotal moment in global trade dynamics. With geopolitical tensions easing and Asian markets like Japan's Nikkei and South Korea's Kospi also surging—up 3.9% and 7% respectively—this agreement signals renewed US-India ties under President Donald Trump and Prime Minister Narendra Modi. Experts highlight its relevance in countering inflation and supply chain disruptions, making it a beacon for economic stability in 2026.
As NSE Chairman Ashish Chauhan noted, "This is pretty much the best deal possible. We've been waiting for it for almost a year." The pact not only lowers barriers but also promises zero tariffs on US goods later, potentially flooding Indian markets with agricultural products—a point of contention for critics.
Sector-Wise Surge: Winners and Gainers
The rally was broad-based, with all 30 Sensex constituents trading in green. Top performers included Adani Ports (up 8.26%), JIOFIN (6.88%), and Bajaj Finance (6.49%). Realty led sectoral gains at 4.65%, followed by auto, financial services, and IT.
- Textiles and Leather Boom: Stocks like KPR Mill and Welspun Living jumped up to 20%, eyeing export boosts in gems, jewelry, and engineering goods.
- Rupee Strengthens: The currency gained 119 paise to 90.30 against the USD, enhancing competitiveness.
- Global Ripple: Asian shares advanced, with Shanghai up 1.3%, amplifying India's momentum.
FICCI President Anant Goenka called it a "Goldilocks period," predicting unleashed "animal spirits" in the economy. Government officials like S. Mahendra Dev foresee increased FDI, while Finance Minister Nirmala Sitharaman emphasized benefits for "Made in India" products.
Political Backlash and Expert Insights
However, the deal has sparked fierce opposition. Congress MP Rahul Gandhi accused PM Modi of being "compromised," questioning the sudden agreement and its impact on farmers. AAP's Sanjay Singh termed it a "stab in the back," vowing parliamentary protests. Shashi Tharoor urged clarity, saying, "We would love to celebrate if it's good news."
On the flip side, US Senator Lindsey Graham praised India's alleged halt on Russian oil purchases, hoping others follow. Amitabh Kant, a Modi aide, predicted job creation in both nations.
Analysts from 129 Wealth Fund advise focusing on export-heavy firms for Dalal Street gains, warning of uncertainties in agricultural imports.
Takeaways for Investors and the Economy
For readers, this India-US Trade Deal offers actionable opportunities: Diversify into realty and textiles for short-term gains, monitor FII inflows (despite recent outflows of âš1,859 crore), and watch parliamentary debates for policy tweaks. Long-term, it could add billions in trade, fostering jobs and growth. As markets continue their post-Budget ascent, stay vigilant—optimism is high, but clarity on terms is key.
In conclusion, the India-US Trade Deal has transformed market sentiment, positioning India as a global trade powerhouse. With Sensex and Nifty on an upbeat trajectory, 2026 could mark a new era of prosperity—if navigated wisely.
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