Dalal Street Rally: Nifty Jumps 4.8%, Sensex Soars 3,600 Points

Mumbai (Maharashtra) [India], February 3:
Indian equity markets opened with a historic rally on Tuesday after the announcement of the India–US trade deal. Positive global cues and strong investor sentiment pushed benchmark indices sharply higher in early trade.

The Nifty 50 surged at the opening bell and recorded one of its biggest single-day opening gains. The index opened at 26,308.05, jumping 1,219.65 points or 4.86 per cent. The BSE Sensex also rallied sharply, rising 3,656.74 points or 4.48 per cent to open at 85,323.20.

Markets opened firmly in positive territory as global risk sentiment improved following the trade agreement between India and the United States.

Trade Deal Seen as Game Changer for Markets

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the US decision to cut tariffs on Indian goods from 50 per cent to 18 per cent has transformed market outlook.

He said the deal could push India’s growth rate to nearly 7.5 per cent in FY27 due to higher exports to the US. Vijayakumar also projected corporate earnings growth of 16–18 per cent and a stronger rupee.

According to him, the combined impact of the US-India trade deal, the EU-India trade agreement, and a growth-oriented Union Budget has lifted overall market confidence.

He added that heavy short-covering would further fuel the rally and said large-cap stocks could outperform due to renewed foreign institutional investor (FII) inflows.

Broad-Based Buying Across Sectors

The rally extended across market capitalisations. On the NSE, the Nifty 100 rose nearly 4 per cent. The Nifty Midcap index gained over 4 per cent, while the Nifty Smallcap index surged 4.6 per cent.

Sectoral indices also witnessed strong buying interest. Nifty IT jumped 5.85 per cent, while Nifty Auto climbed 5 per cent. Nifty Metal rose 3.88 per cent, Nifty Pharma gained 4.27 per cent, and Nifty Consumer Durables advanced 4.25 per cent. FMCG stocks saw relatively modest gains of 1.8 per cent.

Vedanta shares rose 3.38 per cent to ₹683, while Hindustan Zinc gained 2.8 per cent to ₹627.

Global Cues and Analyst View

Ponmudi R, CEO of Enrich Money, said the tariff cut lifted global risk sentiment. He noted that GIFT Nifty had already signalled a strong gap-up opening overnight.

He added that markets have moved past recent post-Budget volatility caused by the hike in Securities Transaction Tax (STT) on derivatives.

Gold, Silver and Fund Flows

Meanwhile, gold prices on MCX rose nearly 2 per cent to ₹1,47,355 per 10 grams (24 karat). Silver prices jumped 6 per cent to ₹2,50,436 per kg.

On the fund flow front, FIIs remained net sellers worth ₹1,832.5 crore on Monday. Domestic institutional investors, however, provided support by buying equities worth ₹2,446.3 crore.

Asian Markets Also Rally

Asian markets opened strong on Tuesday. Japan’s Nikkei 225 surged over 3 per cent, while South Korea’s KOSPI jumped 4 per cent. Taiwan’s weighted index gained 1.46 per cent, and Singapore’s Straits Times rose 0.8 per cent. Hong Kong’s Hang Seng index, however, traded marginally lower.

The sharp rally followed US President Donald Trump’s announcement of the India-US trade deal, which includes significant tariff reductions and marks a major boost for investor confidence.