India’s benchmark stock indices skyrocketed at open on February 3, 2026, reversing post-budget losses after US President Donald Trump’s late-night Truth Social announcement of a finalized India-US trade deal. The BSE Sensex jumped over 3,600 points from Monday’s close of 81,666.46 to above 85,000, while the NSE Nifty 50 soared 1,200 points from 25,088.40 to over 26,000.
Deal Details and Trump’s Announcement
Trump revealed the agreement followed a call with Prime Minister Narendra Modi, slashing US reciprocal tariffs on Indian imports from 25% to 18% effective immediately, with India eliminating tariffs and non-tariff barriers on US products like GM soyabean, corn, dairy, energy, technology, and coal worth $500 billion. Modi hailed it as a key step, building on recent India-EU Free Trade Agreement dubbed the “mother of all deals.” The pact aims to boost bilateral trade amid global tensions.
Market Volatility Backdrop
Markets had plunged nearly 2% on Monday—worst budget day in six years—after Finance Minister Nirmala Sitharaman’s 2026 union budget proposed higher stock transaction taxes, wiping out Rs 10 lakh crore in wealth and pushing Sensex below 80,000. Recent swings followed EU deal optimism, lifting textiles 12% but hitting autos 4%. Trump’s post reversed the sentiment overnight.
