The agreement on a tariff deal between India and the US sparked a surge in the stock market. The Sensex jumped 3,800 points, and the Nifty also gained 1,500 points.

The agreement reached between India and the US on a tariff deal sparked tremendous enthusiasm in the stock market. The stock market opened with a strong surge on Tuesday. In the pre-opening session itself, the Sensex made a historic jump of 3,800 points, while the Nifty also saw a big jump of 1,500 points. Investors welcomed the finalization of the trade deal, and as soon as the market opened, buying was so intense that all sectors, including auto, pharma, and textile, reached the green mark within the first few minutes. The rupee also opened with great strength on Tuesday.

On Tuesday, the BSE Sensex opened at 85,323.20, up 3,657 points from its previous close, while the NSE Nifty opened at 26,308.05, up 1,219.65 points from its previous close. At around 9.31 am, the 30-share BSE Sensex was trading at 83,920.51, up 2,254 points, or 2.76 percent. The NSE Nifty was at 83,920.51, up 691.30 (2.76 percent) points. During this period, all Nifty indices were seen trading in the green. During the trading session, the Sensex touched a high of 85,871.73, while the Nifty touched a low of 26,341.20.

These sectors saw growth

In the broader market, both the Nifty Midcap 100 and Smallcap 100 saw strong gains of over 4 percent. Among sectors, Nifty Auto, IT, Metals, Banks, PSU Banks, and Pharma recorded gains of over 3 percent.

During this period, 29 out of 30 Sensex stocks saw gains, with Adani Ports seeing the highest gain of over 6.89 percent. Bajaj Finance (4.90 percent), Indigo (4.66 percent), Bajaj Finserv (4.39 percent), Eternal (4.16 percent), L&T (3.70 percent), and Sun Pharma (3.63 percent) were among the top gainers. Only ITC saw a decline.

Rupee strengthens 1.2% to 90.4

The positive impact of the tariff deal was also visible in the forex market. The rupee strengthened by 1.2% at market opening, jumping from Monday's level of 91.52 to 90.4. This was one of the strongest opening moves in the rupee-dollar market in several months. Investors believe that the reduction in US tariffs will have a positive impact on India's exports and foreign capital inflows, which could further strengthen the rupee.

America reduced tariffs from 25% to 18%

The Indian stock market saw a significant surge today following the agreement reached between India and the US on a trade deal. US President Donald Trump reduced the reciprocal tariff on India from 25% to 18%. Trump's announcement has raised hopes for India's foreign trade. The details of this trade deal are expected to become clearer soon. This impact was seen on the stock market on Tuesday.  

The stock market is back in action

The Indian stock market, which had long been under pressure from US tariffs, has regained its momentum. Experts have predicted that stocks of companies in export-oriented sectors, such as auto, textile, pharmaceutical, seafood, and consumer goods, could see gains. Conversely, sectors at risk of increased US imports may face some pressure.

America is India's biggest trade partner

The United States is a major trade partner for India. Companies in several sectors, particularly auto parts, pharmaceuticals, textiles, and gems and jewelry, have consistently generated significant revenue from the American market. Reducing tariffs from 25% to 18% will directly benefit export-oriented sectors. Indian exporters' products will become cheaper for American consumers, potentially boosting Indian exports. This will also significantly reduce India's trade deficit with the United States.  

Impact of oil imports from Venezuela!

The US President has announced that India will stop purchasing crude oil from Russia and instead purchase more oil from the US and Venezuela. According to experts, if this happens, the picture of India's oil imports could change. Although US oil is generally more expensive than Russian oil, oil imported from Venezuela has become cheaper.