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Mumbai. After the agreement on trade agreement between India and America, major stock indices Sensex and Nifty witnessed tremendous rise in early trading on Tuesday. Under this agreement, Washington will reduce the retaliatory duty on Indian goods from the current 25 percent to 18 percent. In early trade, the 30-share BSE Sensex rose 3,656.74 points to 85,323.20.

At the same time, NSE Nifty of 50 shares rose by 1,219.65 points to reach 26,308.05. Later both the indices extended their gains. The Sensex rose 4,205.27 points or 5.14 percent to 85,871.73. Till the time of writing the news, Nifty was also at 26,341.20 with a jump of 1,252.8 points or 4.99 percent.

US President Donald Trump on Monday said after a phone conversation with Prime Minister Narendra Modi that India and the US have agreed to a trade deal, under which Washington will reduce retaliatory duties on Indian goods to 18 percent from the current 25 percent.

Among Sensex companies, shares of Adani Ports, Bajaj Finance, Eternal, Bajaj Finserv, Interglobe Aviation and Reliance Industries saw huge gains in the range of 3.7 to 7.2 percent. On the other hand, ITC was the only laggard among the big companies.

According to stock market data, foreign institutional investors (FIIs) sold shares worth Rs 1,832.46 crore on Monday, while domestic institutional investors (DIIs) bought shares worth Rs 2,446.33 crore. Global oil benchmark Brent crude fell 0.51 percent to $65.96 a barrel.

Tremendous rise in rupee

After the news of trade agreement between India and America, the rupee rose by 119 paise to 90.30 against the US dollar in early trade on Tuesday. Forex traders said the US duty cut has changed the entire picture.

This has strengthened India’s position in front of the world and opened the doors for the return of foreign institutional investors to the Indian market. At the interbank foreign exchange market, the rupee opened at 90.30 against the US dollar, registering an increase of 119 paise against the previous close of 91.49.

Meanwhile, the dollar index, which gauges the US dollar’s position against six major currencies, was down 0.20 per cent at 97.43. Global oil benchmark Brent crude was trading 0.41 per cent lower at $66.03 per barrel in futures trade. According to stock market data, foreign institutional investors sold shares worth Rs 1,832.46 crore on Monday.

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Stock Market Today: Sensex and Nifty rise in early trade