Mumbai: Indian stock markets opened sharply higher on Tuesday, extending the previous session’s momentum, as investors reacted positively to the announcement of a trade understanding between India and the United States. Benchmark indices surged in early deals, reflecting strong risk appetite across sectors.
The BSE Sensex vaulted more than 3,600 points at the opening bell, rising nearly 4.5 per cent to trade above the 85,300 mark. The NSE Nifty also saw a powerful start, climbing over 1,200 points to move past 26,300 in early trade.
Market sentiment was buoyed by the late-evening announcement from US President Donald Trump on Monday, outlining an agreement that significantly eases trade barriers between the two countries. Under the arrangement, reciprocal tariffs imposed by the US on Indian exports have been reduced from 25 per cent to 18 per cent. In addition, Washington has removed a separate 25 per cent penalty levy that had been linked to India’s purchase of Russian crude oil, effectively lowering the overall tariff impact from 50 per cent to 18 per cent.
The rally builds on gains recorded in the previous session, when equities closed higher after investors assessed key takeaways from the Union Budget. On Monday, the Sensex ended the day nearly 950 points higher at 81,666, while the Nifty advanced over one per cent to settle above 25,000. The total market capitalisation of companies listed on the BSE expanded by more than ₹5 lakh crore, touching ₹455.26 lakh crore.
Analysts said optimism around the trade announcement, combined with confidence in the government’s fiscal roadmap and growth-oriented policy stance outlined in the Budget, has strengthened expectations for sustained earnings growth over the medium term.
With global cues turning supportive and domestic policy signals remaining stable, market participants expect momentum to remain firm in the near term, though they caution that volatility could persist as details of the trade agreement emerge.
