News

Stock Market Today: Indian equities staged a sharp rebound on Tuesday, shaking off Budget-related jitters after the US and India announced a trade deal that cut tariffs and improved the outlook for foreign inflows. Benchmark indices surged close to 3 per cent in late morning trade, pushing market capitalisation sharply higher.

The BSE Sensex jumped 2,424.57 points, or 2.97 per cent, to 84,091.03.

The NSE Nifty 50 climbed 743.65 points, or 2.96 per cent, to 25,832.05.

The rally came after a strong gap-up opening. The Sensex opened at 85,323.20 and hit an intraday high of 85,871.73. The Nifty opened at 26,308.05 and moved close to its life high of 26,373.20.

Total market capitalisation of BSE-listed companies rose to Rs 4,68,32,287 crore (provisional) by late morning on February 3.

On Budget day, February 1, market capitalisation stood at Rs 4,50,61,658.60 crore.

This implies a gain of about Rs 17.7 lakh crore in just two trading days, highlighting the speed of the turnaround after Sunday’s sell-off.

On February 1, markets were volatile. The Nifty 50 opened at 24,796.50, slipped to a low of 24,679.40, and later rose to a high of 25,108.10 before ending lower. The Sensex closed at 81,666.46, still up 1.2 per cent on the day. Most sectoral indices gained, except IT and healthcare.

Sentiment improved sharply after US President Donald Trump announced a trade deal with India following a call with Prime Minister Narendra Modi.

Under the agreement, the US will reduce tariffs on Indian goods to 18 per cent from earlier levels. In return, India will cut trade barriers and increase purchases of US energy and other products. Trump said India has committed to buying more than $500 billion worth of US energy, alongside technology and agricultural products.

The deal removes a key overhang that had weighed on Indian assets after the Budget. Lower tariffs improve India’s export competitiveness and strengthen the case for foreign investor flows at a time when valuations had corrected.