India US trade deal : Stock market cheers, Sensex jumps over 5%; Nifty nears all-time high

The BSE Sensex 30 is also up 84077.5 points at the sane time.

The Nifty 50 opened at 26308.05 and shot to 26341.2, the day’s high and slid to the day’s low of 25641.3 points.

India-U.S. trade deal LIVE

“It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and a Powerful and Respected Leader of his Country,” Mr. Trump wrote on his social media handle in the late hours of February 2.

“We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!,” Mr. Trump said.

“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO. The Prime Minister also committed to ‘BUY AMERICAN’, at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products. Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most. Thank you for your attention to this matter!,” Mr. Trump added..

Later, both the benchmark indices further extended their winning momentum. The BSE benchmark zoomed 4,205.27 points or 5.14% to 85,871.73. The Nifty jumped 1,252.8 points or 4.99% to 26,341.20.

From the Sensex firms, Adani Ports, Bajaj Finance, Eternal, Bajaj Finserv, InterGlobe Aviation and Reliance Industries were trading sharply higher in the range of 7.2-3.7%.

ITC emerged as the only laggard from the blue-chip pack.

The dramatic announcement of the long-awaited U.S.-India trade deal and the U.S. decision to cut tariffs on India from 50% to 18% is a game-changer for the Indian economy and stock markets.

“The combination of the U.S.-India trade deal, the EU-India trade deal, and the growth-oriented Budget will boost the market sentiments and the animal spirits in the economy. The stock market, anticipating and discounting these developments, will boom,” V.K. Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

In Asian markets, South Korea’s Kospi rebounded and jumped 5%. Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index were also trading higher.

U.S. markets ended higher on Monday (February 2, 2026).

Foreign institutional investors offloaded equities worth ₹1,832.46 crore on Monday (February 2, 2026), while Domestic Institutional Investors (DIIs) bought stocks worth ₹2,446.33 crore, according to exchange data.

Brent crude, the global oil benchmark, dipped 0.51% to $65.96 per barrel.

On Monday (February 2, 2026), the Sensex jumped 943.52 points or 1.17% to settle at 81,666.46. The Nifty climbed 262.95 points or 1.06% to end at 25,088.40.

Textile, leather stocks jump

Textile and leather stocks surged as much as 20% on Tuesday (February 3, 2026) morning after the India-U.S. trade deal.

Shares of K.P.R Mill surged 20%, Garware Technical Fibres zoomed 20%, Welspun Living jumped 19.85%, Vardhman Textiles soared 19.60%, Trident jumped 19.52%, Raymond Lifestyle climbed 9.56% and Page Industries climbed 5.31% on the BSE.

Among leather and footwear stocks, Bhartiya International jumped 10.70%, Mayur Uniquoters surged 7.39%, Bata India climbed 5% and Metro Brands went up by 3.96%.

“The agreement reduces reciprocal U.S. tariffs on Indian goods from 25% to 18%, removing a major overhang that had weighed on export-oriented sectors, manufacturing, and overall market sentiment in recent months,” R. Ponmudi, CEO of Enrich Money, said.

The announcement assumes significance as several labour-intensive sectors like textiles, apparel, leather and marine were facing challenges to export goods to the U.S. due to the 50% tariffs.

India’s merchandise exports to the US declined 1.83% to $6.88 billion in December 2025 due to high tariffs imposed by America, according to Commerce Ministry data.

(with inputs from PTI)

Published – February 03, 2026 10:29 am IST