Markets ended sharply higher on Tuesday as investors reacted positively to the India–US trade deal, a strong rise in the rupee, and heavy buying in large stocks such as Reliance Industries and major financial companies. Export-oriented stocks also saw strong demand, leading to a broad-based rally across sectors.
The S&P BSE Sensex jumped 2,072.67 points to close at 83,739.13, while the NSE Nifty50 rose 639.15 points to settle at 25,727.55. The Nifty recorded its best single-day gain since May 2025, showing a strong return of buying interest after recent weakness.
MARKETS RALLY AFTER INDIA–US TRADE DEAL
Markets opened on a strong note and extended gains quickly after US President Donald Trump announced the India–US trade deal.
Investors welcomed the sharp reduction in US tariffs on Indian goods, which is expected to support exports and improve trade flows between the two countries.
Buying was intense in early trade. Within the first 15 minutes, investor wealth increased by nearly Rs 13 lakh crore. The total market capitalisation of companies listed on the BSE rose to around Rs 468.32 lakh crore, showing that buying was not limited to a few stocks but spread across the market.
The Nifty surged as much as 5% in early trade, putting it on track for one of its strongest single-day performances in five years.
RUPEE POSTS BEST SINGLE-DAY GAIN IN YEARS
Another key reason behind the rally was the sharp rise in the rupee. The Indian currency posted its best single-day gain since December 2018. The rupee strengthened by 1.36% to close at 90.2650 against the US dollar, compared with its previous close of 91.5125.
A stronger rupee helped improve market confidence, as it reduced concerns around foreign fund outflows and import-related pressures. The rise in the currency also raised hopes of fresh foreign institutional investor inflows into Indian equities.
Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said the rupee gained sharply after the trade deal announcement.
He said the agreement improved market sentiment as expectations of stronger trade flows and foreign inflows boosted confidence in the domestic currency. He added that USDINR was trading near 90.25, with resistance around 89.90 and support near 90.50. As long as the rupee stays above this support level, the overall trend remains positive.
HEAVYWEIGHT AND EXPORT STOCKS LEAD THE RALLY
Large-cap stocks played a major role in pushing the indices higher. Reliance Industries and heavyweight financial stocks saw strong buying, which helped lift the Sensex and Nifty.
Export-oriented sectors also performed well, as investors priced in better earnings prospects after the tariff cut. Stocks linked to textiles, aquaculture, gems and jewellery, and pharmaceuticals attracted buying interest during the session.
Vinod Nair, Head of Research at Geojit Investments Limited, said equities saw a strong rally driven by the long-awaited India–US trade deal and a strengthening rupee.
He said the cut in US tariffs from 50% to 18% improves India’s position among emerging markets and supports export-focused sectors with high exposure to the US. He added that overall market mood has turned positive as global trade risks ease and geopolitical tensions moderate. Going ahead, he said markets may focus on ongoing Q3 results, with hopes of possible earnings upgrades due to lower tariff-related risks.
TOP GAINERS AND LIMITED LOSSES
After the closing bell, Adani Ports and Special Economic Zone Ltd emerged as the top gainer on the Sensex, rising 9.12%. Bajaj Finance Ltd gained 6.68%, while InterGlobe Aviation Ltd rose 5.51%. Power Grid Corporation of India Ltd advanced 4.85%, and Sun Pharmaceutical Industries Ltd ended the day up 4.63%.
On the losing side, only a handful of stocks closed lower. Tech Mahindra Ltd slipped 0.57%, while Bharat Electronics Ltd edged down marginally by 0.02%.
From a technical point of view, analysts said the sharp move changed short-term market sentiment.
Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty opened with a gap-up and saw some profit booking during the day.
He said that although a large red candle formed on the daily chart, the index managed to close above the 38.2% Fibonacci retracement level near 25,500. This, he said, has led to a quick shift in market approach from sell-on-rise to buy-on-dips. He added that immediate support lies in the 25,470 to 25,500 zone, while resistance is seen between 26,000 and 26,200.
Overall, the strong rise in the stock market was driven by positive trade-related news, a sharp recovery in the rupee, and solid buying in heavyweight and export-focused stocks. Investors will now track corporate earnings and global cues to see whether the momentum can continue in the coming sessions.
