Indian Stock Market In Focus Today, To Surge After India-US Trade Breakthrough
The Indian stock markets are expected to open higher on February 3, 2026, following a significant improvement in trade relations between India and the United States. US President Donald Trump announced a bilateral trade agreement with Prime Minister Narendra Modi after their telephone conversation, which reduced tariffs on Indian imports and boosted global market confidence.
The announcement marked a clear shift from tariff threats to deal-making, a move markets welcomed overnight. Asian stock markets moved higher, while GIFT Nifty posted strong gains as investors interpreted Trump’s decision as a positive signal. With uncertainty easing and optimism rising, Dalal Street is preparing for a strong market opening, underscoring how swiftly markets react when Trump changes his tone.
Stock Market Today: GIFT Nifty Signals a Market Relief Rally
- Focus on Markets: Attention is high after the long-awaited India-US trade agreement.
- Tariff Cut Confirmed: President Trump announced a cut in tariffs on Indian goods to 18%, including relief linked to India’s energy purchases.
- GIFT Nifty Reaction: The index jumped nearly 800 points at one stage before easing slightly.
- Market Implication: The move signals a broad-based relief rally and indicates a potential gap-up opening for Indian equities.
US To Drop 25% Additional Tariff on India
Hours after the announcement, a senior White House official clarified the remaining tariff structure.
“The US will also drop the 25% additional tariff on Indian imports since India reduced purchases of Russian oil. The agreement is that India will cease, not just reduce, Russian oil purchases,”
the official told news agency ANI.
Imapct Of The India-US Trade Deal On Indian Stock Market
The Indian economy receives a major boost from tariff reductions, which especially benefit export sectors that previously paid a 50% tax.
Sector Winners
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Textiles – The industry is expected to achieve better performance in international markets.
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Gems & Jewellery – Companies will benefit financially through decreased import and export expenses.
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IT Services – Improved conditions are likely to enhance profit margins.
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Automobiles – Companies will gain a stronger international market presence and better financial results through increased export activity.
U.S.-Listed Indian Companies
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Infosys – Stock price increased by 4.3%
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Wipro – Stock price rose by 6.8%
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HDFC Bank – Stock price gained 4.4%
Foreign Investment Outlook
Analysts predict that recent FII outflows are likely to reverse. The agreement removes a major geopolitical and economic constraint on Indian assets, helping to increase investor confidence.
India-US Trade Deal Brings Tariff Relief, Strengthens Market Optimism
Think of it as a trade makeover: Indian goods just got a huge tariff haircut. The overall US tariff on Indian products dropped to 18% thanks to two big moves, goodbye 25% punitive duty on Russian oil-linked imports, and a slash of the reciprocal tariff from 25% to 18%. Markets and exporters are doing a happy dance.
In return, India is playing ball by moving toward zero tariffs on US goods and halting purchases of Russian crude oil. On top of that, Trump claims India will buy over $500 billion of US energy, tech, and agricultural products.
Here’s the kicker: Trump framed this deal as a way to hit Russian oil revenues amid the Ukraine war while nudging India’s energy demand toward the US (and maybe Venezuela). For investors and exporters, it’s a triple-win: tariffs down, trade ties up, and global strategy in play. Are markets ready to cheer? Dalal Street thinks so.
What Happens Next? Stock Market Today Outlook
The Indian markets will experience a strong bullish phase after the “tariff tantrum” cloud has disappeared if the current concessions remain in effect.
Likely Market Movements
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The Sensex and Nifty 50 will open with large gap-up movements because of increased foreign portfolio investor (FPI) investments.
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Export-sector recovery occurs through IT, Pharma, and Textiles sectors as their margins start to improve.
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Reliance Industries and ONGC now shift their energy sourcing methods after they complete their energy realignment process.
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The Rupee gains value because export opportunities have improved and foreign investors have started to return.
(With Inputs From ANI And Reuters)
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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