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StockMarkets – Indian stock markets delivered a powerful performance on Tuesday, buoyed by renewed investor optimism after the long-awaited India–US trade agreement was formally concluded. The announcement triggered broad-based buying, pushing key indices sharply higher and reinforcing confidence in India’s economic and trade outlook.

The benchmark Sensex and Nifty both ended the session with notable gains, reflecting strong participation across sectors and market segments. Traders and long-term investors alike responded positively to expectations that improved trade relations with the United States could enhance exports, corporate earnings, and capital flows into India.

Benchmark indices close with strong gains

The Nifty recorded a jump of 639.15 points, rising 2.55 per cent to close at 25,727.55. The Sensex also posted a substantial advance, underscoring the upbeat mood across Dalal Street. Market participants noted that the rally was supported by sustained buying throughout the session rather than short-term speculative activity.

According to market analysts, the Nifty’s immediate support zone is placed between 25,500 and 25,600, an area seen as a crucial gap support level. On the upside, the range of 25,900 to 26,000 is being closely watched as a significant psychological resistance and potential supply zone.

Trade deal announcement boosts confidence

The surge in equities followed confirmation from US President Donald Trump that reciprocal tariffs on Indian goods would be reduced to 18 per cent under the new agreement. Investors viewed the tariff adjustment as a meaningful step toward smoother trade flows between the two countries.

Market experts said the development has eased concerns over trade barriers and could help Indian exporters become more competitive in the US market. Expectations of stable policy direction and stronger bilateral cooperation further added to the positive sentiment during the session.

Heavyweight stocks lead the rally

Several large-cap stocks played a key role in driving the indices higher. Shares of Adani Ports, Bajaj Finance, IndiGo, and PowerGrid registered strong gains, contributing significantly to the overall market advance. Buying interest in these counters reflected confidence in companies with strong balance sheets and exposure to infrastructure, financial services, and travel demand.

In contrast, Tech Mahindra and Bharat Electronics Limited were the only notable stocks on the Sensex to close in the red. Their modest declines did little to dent the broader rally, as gains elsewhere outweighed the limited weakness.

Sectoral indices end firmly higher

Positive momentum was visible across the sectoral landscape, with every major index finishing the day in positive territory. The Nifty Realty index emerged as the top performer, climbing more than 4 per cent as investors showed renewed interest in property-related stocks.

Other sectors such as chemicals, pharmaceuticals, and consumer durables also attracted strong buying, each advancing over 3 per cent. Analysts attributed the sector-wide gains to expectations of improved demand conditions and better earnings visibility in the coming quarters.

Broader market mirrors upbeat trend

The rally was not limited to large-cap stocks, as the broader market also witnessed healthy participation. The Nifty MidCap 100 index rose 2.84 per cent, while the Nifty SmallCap 100 index gained 2.82 per cent, indicating a balanced risk appetite among investors.

Market observers said the broad-based nature of the advance highlighted growing confidence in the economic outlook rather than a narrow, index-driven move.

Rupee strengthens sharply after deal

Adding to the positive backdrop, the Indian rupee posted a sharp appreciation following the trade deal announcement. The currency strengthened by Rs 1.28, or nearly 1.40 per cent, marking its best single-day gain since December 2018.

Analysts noted that a stronger rupee, combined with improved trade prospects, has raised expectations of renewed foreign institutional investor inflows. Together, these factors helped reinforce the optimistic tone in Indian equities during the session.