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Stock market recap: Indian stock markets rallied on Tuesday, 3 February, after India and the US confirmed the long-awaited trade deal. US President Donald Trump said that reciprocal tariffs on Indian goods would be reduced to 18%, from 50%. In return, India agreed to significantly lower both tariff and non-tariff barriers on American products, effectively bringing them down to zero.

The benchmark BSE Sensex ended 2072.67 points higher or 2.54% to end at 83,739.13. The Nifty 50 climbed 629.75 points, or 2.51%, to settle at 25,718.15 during the session. Nifty Smallcap and Nifty Midcap indices also surged around 3% in trade today.r

Best stocks to buy today (All Buy trades are rates of Equity & Sell rates are based on F&O)

CENTURYPLY: Buy above ₹840, stop ₹810 target ₹945 (Multiday)

ECLERX: Buy above ₹4950, stop ₹4860 target ₹5350 (Multiday)

SONACOMS: Buy above ₹532, stop ₹515 target ₹585(Multiday)

Indian equity markets staged a powerful rally, with both the Nifty 50 and Sensex recording one of their strongest single-day gains in recent months.

The Nifty 50 surged by 710 points, or 2.83%, to close at 25,798, while the Sensex jumped 2,289 points, or 2.80%, to end at 83,956. This broad-based uptrend was fuelled by optimism surrounding the Union Budget, which emphasized infrastructure spending and supportive fiscal measures, alongside a steady monetary stance from the Reserve Bank of India.

Investor sentiment was also buoyed by India’s robust GDP growth projection of 7.4% and relatively contained inflation trends, which reinforced confidence in the country’s economic trajectory.

Sectoral performance reflected the bullish mood, with infrastructure and power stocks leading the charge, Power Grid alone surged more than 7%. Banking and financial counters also advanced strongly, supported by expectations of credit growth and stable interest rates, while IT and pharma stocks posted moderate gains on resilient global demand. The rally was underpinned by foreign institutional inflows, signalling renewed global confidence in Indian markets.

Outlook for trading

Although the sharp rebound followed initial caution after the Budget announcement, particularly around changes in securities transaction tax, the market quickly regained momentum as traders positioned for medium-term growth opportunities. While risks remain in the form of potential volatility, global monetary shifts, and corporate earnings alignment, the session on 3rd February 2026 marked a decisive bullish turn, setting the stage for continued optimism in Indian equities.

The trade deal has once again given the much-needed revival cues that we were talking about resulting in some upbeat momentum across the board. With FIIs remaining heavy seller ahead of the Budget would look to now cover their short position as the positive vibes emerging from the deals that have been entered by India could help the market revive.

Option data readings indicate that the tides have definitely turned in favour of the bullish camp and with 25700 Putt generating some strong Put writing with some possibility of upside that can emerge as things start becoming cleared about the deals. As the RBI policy is expected in next two days we will be able to get more confirmation on the lows being sealed for the near term.

Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:

CENTURYPLY (current market price ₹835.55) - Buy above ₹840, stop ₹810 target ₹945 (Multiday)

ECLERX (current market price ₹4947) - Buy above ₹4950, stop ₹4860 target ₹5350 (Multiday)

SONA COMS (current market price ₹530.20) - Buy above ₹532, stop ₹515 target ₹585(Multiday)

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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