Indian stock markets staged a powerful rally on February 3 after India and the US confirmed a long-awaited trade deal, lifting investor sentiment sharply. Benchmark indices rose more than 2.5 percent, while investor wealth swelled by over ₹12.5 lakh crore in a single session as buying spread across sectors.
Here are the key highlights from today’s market action:
Big jump in benchmark indices
The BSE Sensex surged 2,072.67 points, or 2.54 percent, to close at 83,739.13. The Nifty 50 gained 629.75 points, or 2.51 percent, to end at 25,718.15.
Broader markets outperform
The rally was not limited to frontline stocks. Nifty Midcap and Nifty Smallcap indices jumped close to 3 percent, indicating strong participation from retail and domestic investors.
Investor wealth jumps sharply
The total market capitalisation of BSE-listed companies rose to about ₹467.35 lakh-crore from around ₹455 lakh-crore in the previous session. This translates into a single-day gain of more than ₹12.5 lakh-crore.
India-US trade deal drives sentiment
Markets reacted positively after US President Donald Trump confirmed that reciprocal tariffs on Indian goods would be cut to 18 percent from earlier levels. India, in turn, agreed to sharply reduce tariff and non-tariff barriers on US products.
Rupee strength and FPI hopes add support
A strengthening rupee and expectations of renewed foreign portfolio investor (FPI) inflows further boosted market confidence.
Most Nifty stocks end higher
As many as 46 of the 50 Nifty stocks closed in the green. Adani Enterprises, Adani Ports and Jio Financial Services emerged as the top gainers.
Very few losers on the Nifty
Only four stocks ended lower on the Nifty 50. Tech Mahindra, Bharat Electronics and SBI Life Insurance were among the marginal laggards.
All sectoral indices close positive
Every sector ended the day in the green. Realty stocks led the rally with gains of over 4 percent. Chemicals, pharma and consumer durables rose more than 3 percent, while banking, auto, metal and PSU bank indices gained between 2.5 and 3 percent.
Strong market breadth
On the NSE, 2,694 stocks advanced, while only 534 declined. Around 90 stocks remained unchanged, highlighting the strength of the rally.
Positive technical outlook, but caution advised
Market experts say the short-term outlook remains positive, with analysts recommending a buy-on-dips strategy. However, traders are advised to watch key support levels around 25,500 on the Nifty and avoid aggressive positions at higher levels.
Overall, the India-US trade deal has eased tariff-related uncertainty and lifted market confidence. Attention is now likely to shift to ongoing quarterly earnings and global cues to see whether the rally can sustain in the coming sessions.
(By arrangement with livemint.com)