Sensex soars to 4,000 points in opening trade, Nifty jumps above 1,200 hours after India-US deal

Indian equity markets staged a historic rally, with benchmark indices Sensex and Nifty surging sharply in early trade, driven by strong investor optimism following a major trade agreement between India and the United States.

Sentiment turned optimistic after Washington announced a reduction in the reciprocal tariff on Indian goods to 18 per cent from the earlier 25 per cent. Reflecting the positive development, the 30-share BSE Sensex jumped 3,656.74 points to open at 85,323.20, while the broader NSE Nifty climbed 1,219.65 points to 26,308.05.

The Sensex soared 4,205.27 points, or 5.14 per cent, to reach 85,871.73, while the Nifty advanced 1,252.80 points, or 4.99 per cent, to 26,341.20. Market enthusiasm was fuelled by an announcement from US President Donald Trump confirming the trade deal with India, months after the United States had imposed steep tariffs of up to 50 per cent on Indian goods in August 2025.

The agreement, unveiled on Trump’s social media platform Truth Social, includes significant tariff reductions and claims that India would cease purchasing Russian oil. Earlier, the Trump administration had imposed a 50 per cent tariff on Indian imports, with 25 per cent linked to allegations that India’s crude oil purchases from Russia were indirectly supporting Moscow’s war efforts in Ukraine.

Among Sensex constituents, shares of Adani Ports, Bajaj Finance, Eternal, Bajaj Finserv, InterGlobe Aviation and Reliance Industries traded sharply higher, posting gains ranging from 3.7 per cent to 7.2 per cent. ITC was the only stock from the blue-chip pack to trade lower.

Commenting on the sharp market upswing, V K Vijayakumar, chief investment strategist at Geojit Investments Limited, said the long-awaited India–US trade deal and the substantial tariff cut marked a turning point for Indian markets.

He added that the combined effect of the India–US and India–EU trade agreements, along with a growth-oriented Union Budget, is likely to significantly boost investor confidence and economic momentum.

Asian markets mirrored the upbeat sentiment, with South Korea’s Kospi rebounding nearly 5 per cent, while Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng indices also traded higher. US markets closed on a positive note overnight.

Exchange data showed that foreign institutional investors sold equities worth Rs 1,832.46 crore on Monday, while domestic institutional investors bought shares worth Rs 2,446.33 crore.

Meanwhile, Brent crude, the global oil benchmark, slipped 0.51 per cent to USD 65.96 per barrel. On Monday, the Sensex had risen 943.52 points, or 1.17 per cent, to close at 81,666.46, while the Nifty gained 262.95 points, or 1.06 per cent, to settle at 25,088.40.