Nifty, Sensex rally sharply as India-US trade agreement slashes tariffs

After a sudden decline in market indices on the day of Union Budget 2026 the Indian equity markets have surged sharply by around 3 per cent early on Tuesday With broadbased buying across sectors Nifty opened and experienced a significant gain while Bank Nifty and Sensex also saw a significant riseAs of 925 am Sensex on Tuesday added 2421 points or 297 per cent to reach 84088 while the Nifty50 gained 741 points or 296 per cent to settle at 25829 as per IANSNifty bullish in afternoon tradeBenchmark domestic equity indices Sensex and Nifty were trading on a bullish note in afternoon trade today climbing around 28 per cent The Sensex soared 2301 points to 83968 while the Nifty advanced 710 points to 25799 when reports last came in All sectoral indices surged with Realty Services Power and Capital Goods emerging as the major gainers Market sentiment improved significantly after the IndiaUS trade deal announcement removed a key overhangIndiaUS trade agreementIndia and the United States during the late hours of Monday have finally agreed to a trade agreement under which reciprocal tariffs on Indian goods will be slashed to 18 per cent from 25 per centThe trade agreement also eliminates the additional 25 per cent duty on purchases of Russian crude oilUS President Donald Trump on Monday said that the trade deal will be effective immediately following a phone call with Prime Minister Narendra Modi offering immediate tariff relief for IndiaIndian stock market all green after a bloodbath on SundayMain broadcap indices on the Indian stock markets posted strong gains as the Nifty Midcap 100 surged 310 per cent and the Nifty Smallcap 100 added 325 per centAll sectoral indices showed huge gains with realty auto consumer durables and IT being the major gainers up 447 per cent 378 per cent 369 per cent and 304 per cent respectively as per IANSIndia now enjoys lower tariff rates than other countriesWith tariff rates being slashed down to 18 per cent Indias tariff rate is now lower than that of several major exportorientated Asian economies Bangladesh Sri Lanka Taiwan and Vietnam face tariffs of 20 per cent while Indonesia Malaysia Thailand the Philippines and Pakistan face tariffs of 19 per centMarket experts on Tuesday after a steep recovery said ldquoImmediate support for Nifty lies at 2560025800 zone while resistance is anchored at 26200ndash26350 zonerdquo as cited by IANSOne of the analysts while hailing the Indian stock marketrsquos sudden upscale asserted The dramatic announcement of the longawaited USIndia trade deal and the US decision to cut tariffs on India from 50 per cent to 18 per cent is a game changer for the Indian economy and stock markets as its delay was the single important factor weighing on the markets as per IANSVarious sectors may see huge inflows after the IndiaUS trade agreementLarge caps including banking leaders nonbanking financials telecom capital goods and IT which are trading the favourites of FII can see huge inflows market watchers saidApart from the Indian stock markets the US markets also ended largely in the green in the last trading session as Nasdaq gained 056 per cent while the SampP 500 advanced by 054 per cent with the Dow adding 105 per centOn February 2 foreign institutional investors FIIs net sold equities worth Rs 1832 crore while domestic institutional investors DIIs were net buyers of equities worth Rs 2446 croreWith inputs from IANS