
The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open sharply higher on Tuesday as investor sentiment improved after US President Donald Trump announced that India and the United States have agreed on a trade deal following discussions with Prime Minister Narendra Modi.
Trump stated that reciprocal tariffs imposed by the US on Indian goods would be reduced to 18% from 25%, while India will also cut tariffs and non-tariff barriers on US imports. The announcement boosted global risk appetite and lifted equity markets worldwide.
Asian markets rallied following the development, and US markets also closed higher overnight, supported mainly by gains in technology and AI-related stocks.
On Feb 3, 2026, Gift Nifty was trading near the 25,939 level, reflecting a premium of about 797 points compared to the previous close of Nifty futures. This signals a strong gap-up start for Indian equity markets, making Gift Nifty the key indicator traders are tracking ahead of market opening.
On Monday, Indian markets ended on a strong note, recovering part of the losses recorded in the previous trading session. The BSE Sensex gained 943.52 points, or 1.17%, to close at 81,666.46, while the NSE Nifty 50 advanced 262.95 points, or 1.06%, to end at 25,088.40.
Asian equity markets traded higher on Tuesday after news of the India-US trade agreement improved investor confidence. Japan’s Nikkei 225 surged 2.44%, while the Topix index rose 1.94%. South Korea’s Kospi jumped over 5%, triggering a buy-side circuit breaker, and the Kosdaq climbed 2.32%. Hong Kong’s Hang Seng index futures also indicated a positive opening.
US markets ended higher on Monday, driven by gains in semiconductor and artificial intelligence-linked stocks. The Dow Jones Industrial Average rose 1.05% to close at 49,407.66, while the S&P 500 added 0.54% to finish at 6,976.44. The Nasdaq Composite climbed 0.56% to 23,592.11.
President Trump confirmed his conversation with Prime Minister Narendra Modi and announced measures aimed at strengthening economic ties between the two nations. As part of the agreement, the US will lower reciprocal tariffs on Indian imports from 25% to 18%, while India will ease tariff and non-tariff restrictions on US goods.
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With Gift Nifty indicating a sharp premium and global markets reacting positively to the India-US trade agreement, Indian equities are poised for a strong start, though volatility may persist as investors assess trade deal details and global cues.
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.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 3, 2026, 8:20 AM IST

Nikitha Devi
Nikitha is a content creator with 7+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.
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