Indian equity markets opened sharply higher on Tuesday, February 3, 2026, following the announcement of a long-pending India–US trade deal by US President Donald Trump. The rally mirrored gains across Asian markets and led to a sharp rise in benchmark indices and investor wealth.
Under the agreement, the reciprocal tariff imposed by the United States on goods exported from India has been reduced to 18 percent from 25 percent. The announcement was made on Monday by President Trump.
The BSE Sensex recorded a b opening. At 9:22 am, the index was trading at 84,158.52, up 2,492 points, or 3.05 percent. The NSE Nifty 50 also registered a sharp rise. At 9:23 am, the index was trading at 25,849.10, higher by 760.70 points, or 3.03 percent.
The market rally led to a significant increase in investor wealth. The total market capitalisation of companies listed on the BSE rose to ₹4,66,96,845 crore, compared with ₹4,54,35,628 crore at the close of the previous session. This translated into an increase of nearly ₹12 lakh crore in investor wealth.
Export-oriented sectors were among the primary beneficiaries of the India–US trade deal. Sectors expected to benefit include textiles and apparel, auto components and engineering goods, specialty chemicals, agriculture, and seafood exports. Select electronics and consumer manufacturing companies with exposure to the US market were also positioned to benefit.
Prasenjit Paul, equity research analyst at Paul Asset and fund manager at 129 Wealth Fund, said the deal had led to a clear shift in global investor sentiment. He stated that foreign investors who had paused investments in Indian markets due to concerns over higher tariffs were now viewing the environment more favourably.
Asian equity markets also traded higher. China’s CSI 300 index rose 0.51 percent, Hong Kong’s Hang Seng gained 0.78 percent, Japan’s Nikkei advanced 3.09 percent, and South Korea’s Kospi climbed 5.3 percent.
US markets also ended higher. The S&P 500 gained 0.54 percent, the Nasdaq rose 0.56 percent, and the Dow Jones Industrial Average advanced 1.05 percent.
Separately, data from the Institute for Supply Management showed that the US manufacturing Purchasing Managers’ Index rose to 52.6 in January, crossing the 50 mark for the first time in 12 months and reaching its highest level since August 2022. The manufacturing sector accounts for 10.1 percent of the US economy.
In commodities, gold and silver prices moved higher. Spot gold rose about 2.22 percent to $4,769.33 per ounce, while silver gained 3.81 percent to trade at $82.39 per ounce.
