The Indian stock market scripted a blockbuster comeback Tuesday, with BSE Sensex exploding 2,254 points or 2.76% to 83,920.51, thanks to the game-changing India-US trade agreement sealed overnight. Markets opened euphoric: Sensex leaped 3,657 points to 85,323.20, Nifty bounded 1,219.65 points to 26,308.05. At 9:31 AM, Nifty held firm at 83,920.51, up 691.30 points, with uniform gains across all indices.
Highs of the session included Sensex at 85,871.73 and Nifty at 26,341.20. Mid and smallcaps outperformed, each rallying 4%, while auto, IT, metals, banking, PSU banks, and pharma sectors surged beyond 3%.
In a near-clean sweep, 29 Sensex stocks rose, led by Adani Ports’ 6.89% surge, Bajaj Finance (4.90%), IndiGo (4.66%), Bajaj Finserv (4.39%), ITC (4.16%), L&T (3.70%), and Sun Pharma (3.63%). ITC alone declined marginally.
At the heart of the rally lies US President Donald Trump’s declaration cutting reciprocal tariffs on Indian goods to 18% from 25%. This tariff relief promises enhanced competitiveness for Indian exports, injecting fresh vigor into the economy and delighting investors with visions of prolonged prosperity.