Tuesday’s session on Dalal Street started with a dramatic turnaround. After a choppy start to the week post-Budget 2026, markets surged on the news of the India–US trade deal, pushing benchmarks to levels not seen in months. Investors were quick to embrace the clarity and optimism the deal offered.
The BSE Sensex jumped over 2,350–2,800 points intraday, while the Nifty 50 reclaimed 25,800–26,000 levels, signaling broad-based buying across sectors.
The Trade Deal Catalyst
The sharp rally traces back to Monday night’s announcement between PM Narendra Modi and US President Donald Trump:
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U.S. tariffs on Indian goods to drop from previous high levels to around 18%.
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India eases tariff and non-tariff barriers on American products toward zero.
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Part of the deal involves India moderating Russian oil imports, easing geopolitical tensions.
Analysts see this as a long-awaited boost for exports, foreign capital inflows, and overall market sentiment.
Markets at a Glance
| Index | Intraday Gain | % Change |
|---|---|---|
| Sensex | 2,350–2,800 pts | 4.4% |
| Nifty 50 | 1,200–1,300 pts | 4.7%–5% |
| Rupee | +1% vs USD | – |
Sector Winners:
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Export-oriented: Avanti Feeds, Apex Frozen (+18–20%)
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Renewable energy: Waaree Energies, Premier Energies (+10–12%)
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Financials: Bajaj Housing Finance (+6% post-Q3 profit)
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Capex beneficiaries: select infrastructure and engineering stocks rallied 8–15%
The gains were led by a combination of trade optimism, Budget clarity, and foreign fund inflows.
Top Stocks in Focus
| Stock Name | Movement | Key Driver |
|---|---|---|
| Bajaj Housing Finance | +6% | Strong Q3 profit, Budget-friendly outlook |
| Avanti Feeds | +20% | Export prospects rise post trade deal |
| Apex Frozen | +18% | Export optimism |
| Waaree Energies | +12% | Renewable sector demand |
| Premier Energies | +10% | Renewable energy investment boost |
Analysts identified around 35 stocks as immediate beneficiaries from Budget 2026 and the India–US trade pact, with export, energy, and infrastructure themes dominating.
Investor Sentiment and Broader Impact
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Foreign Institutional Investors (FIIs) are expected to return aggressively, given tariff clarity and renewed export momentum.
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The rupee strengthened by 1%, reflecting positive capital inflows.
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Strategists see this as a potential structural shift, where tariff certainty boosts corporate earnings for FY27.
Markets are now digesting short-term Budget concerns while pricing in longer-term trade stability.
What Traders Are Watching Next
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FII inflows and sustainability of momentum.
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Export orders in sectors like seafood, textiles, and auto components.
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Corporate earnings trajectory for Q3–Q4 FY26.
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Currency stability and its impact on import-dependent sectors.
Bottom Line
Dalal Street’s rally today isn’t just a one-off pop. It’s a reflection of renewed optimism driven by India–US trade clarity, Budget implications, and strategic policy moves. Traders, investors, and analysts alike will be watching how these gains hold through the week, especially as earnings and global macro cues emerge.
FAQs:
Q1: Why did Sensex and Nifty rise sharply today?
A: The market reacted to the India–US trade deal, which reduced U.S. tariffs on Indian goods and eased trade barriers, boosting investor sentiment and export prospects.
Q2: How much did Sensex and Nifty gain?
A: Sensex climbed over 2,350 points, while Nifty 50 reclaimed levels above 25,800, marking one of the steepest single-day gains recently.
Q3: Which sectors benefited the most?
A: Export-oriented sectors, renewable energy, and capex-linked stocks saw strong gains. Top performers included Avanti Feeds, Apex Frozen, Waaree Energies, and Bajaj Housing Finance.
Q4: Are these gains likely to be sustained?
A: Short-term momentum is strong, but analysts caution that sustainability depends on FII flows, earnings results, and global cues over the coming days.
Q5: Did the rupee move as well?
A: Yes, the rupee strengthened by around 1% against the U.S. dollar, reflecting renewed foreign capital inflows and market optimism.
Q6: How does this trade deal impact India’s exports long-term?
A: Lower tariffs and trade clarity are expected to boost Indian exports, especially in textiles, seafood, and engineering goods, potentially improving corporate earnings in FY27.
Q7: Which investors are most affected by this news?
A: FIIs, domestic retail investors, and companies with strong export exposure are the main beneficiaries, while import-heavy sectors may see mixed impact.
