Stock market benchmark indices Sensex and Nifty surged in the early trading session on Tuesday (February 3, 2026) after India and the U.S. agreed to a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18 per cent from current 25 per cent.
The 30-share BSE Sensex jumped 3,656.74 points to 85,323.20 in opening trade. The 50-share NSE Nifty surged 1,219.65 points to 26,308.05.
Later, both the benchmark indices further extended their winning momentum. The BSE benchmark zoomed 4,205.27 points or 5.14 per cent to 85,871.73. The Nifty jumped 1,252.8 points or 4.99% to 26,341.20.
India and the U.S. have agreed to a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18% from the current 25%, U.S. President Donald Trump said on Monday (February 2, 2026) after a phone conversation with Prime Minister Narendra Modi.
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.
Published – February 03, 2026 10:29 am IST
