India-US Trade Deal: Key Things to Know About Indian Stock Market

After months of negotiations, India and the US have finally finalised a trade agreement, slashing the overall tariff rate from 50% to 18%. This move is set to shine the spotlight on export-oriented stocks in Tuesday’s trading session.

The India-US trade deal marks a much-needed victory after a prolonged period of economic uncertainty. For foreign investors, predictable and robust trade relationships are essential, and a strengthened US-India partnership also signals improved geopolitical alignment and policy stability, lowering the risk of sudden trade disruptions.

Key Things You Should Know About the Indian Stock Market

• Indian markets reacted strongly to the announcement of the deal on Monday night, with the Sensex surging over 2,000 points and the Nifty gaining more than 1,000 points in early trade on Tuesday.
• The Nifty 50’s 1,200-plus point jump in early trading represents the largest single-day absolute gain in the index’s history. This initial surge pushed BSE-listed companies’ combined market capitalisation up by nearly ₹20 lakh crore, rising from ₹455 lakh crore on Monday to ₹474 lakh crore, before settling around ₹466 lakh crore.
• Textile stocks led the rally, with companies such as Gokaldas Exports, Welspun Living, and KPR Mills seeing gains of up to 20% in early trade, maintaining strong momentum between 15% and 20%.
• Bharat Forge also benefited from the deal, with shares climbing as much as 9%, reflecting the company’s significant exposure to the US market.
• Market breadth remains extremely positive, with an advance-decline ratio of 10:1. On the NSE, over 2,250 stocks are advancing compared to just 250 in decline, highlighting broad-based investor optimism.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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