Stock market today: Indian stock markets delivered an extraordinary rally on Tuesday, February 3, after India and the United States confirmed the long-awaited India-US trade deal. US President Donald Trump confirmed that reciprocal tariffs on Indian goods would be reduced to 18%, a steep cut from the earlier 50%. In return, India agreed to significantly lower both tariff and non-tariff barriers on American products, effectively bringing them down to zero.
The benchmark BSE Sensex ended 2072.67 points higher or 2.54% to end at 83,739.13. The Nifty 50 climbed 629.75 points, or 2.51%, to settle at 25,718.15 during the session. Nifty Smallcap and Nifty Midcap indices also surged around 3% in trade today.
The sharp move also led to a massive rise in investor wealth. The combined market capitalisation of BSE-listed companies increased to ₹467.35 lakh crore from ₹455 lakh crore in the previous session, translating into a gain of more than ₹12.5 lakh crore in a single day as participation broadened across sectors.
Indian stock markets witnessed a historic surge on Tuesday, February 3, delivering one of the strongest single-day rallies in recent memory after India and the U.S. announced the long-awaited trade deal. The breakthrough eased months of tariff uncertainty that had kept investor sentiment restrained and foreign flows cautious.
- Why markets rose today?
The key reason behind today’s rally was the announcement of a trade pact between India and the United States.
US President Donald Trump confirmed the development, saying, “We agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%. They will likewise move forward to reduce their Tariffs and non-tariff barriers against the United States to ZERO,” signalling swift implementation and mutual market access.
Moreover, a strengthening rupee and hopes of FPI inflows revival contributed to the improving mood.
“Indian equities experienced a significant rally today, driven by the long‑anticipated India–US trade deal and a strengthening rupee, which boosted expectations of renewed FII inflows. Overall market sentiment has turned decisively positive, with global trade risks easing and moderation in the US-Iran conflict. Going forward the markets could focus more on the ongoing Q3 corporate results with a positive bias, which till date have been below estimates, because of potential future earnings upgrades led by reduction in tariff risk,” said Vinod Nair, Head of Research, Geojit Investments Limited.
2. Top Nifty 50 gainers
As many as 46 stocks ended higher in the Nifty 50 index, among which Adani Enterprises (up 10.40%), Adani Ports (up 9.12%), and Jio Financial Services (up 8.15%) ended as the top gainers.
3. Top losers in the Nifty 50 index
Only 4 stocks ended in the red. Tech Mahindra (down 0.66%), Bharat Electronics (down 0.16%), and SBI Life Insurance (down 0.08%) ended as the top losers in the index.
4. Sectoral indices today
All sectoral indices ended in the green, led by the Nifty Realty index, which surged over 4%. The Nifty Chemical, Pharma, and Consumer Durables indices also jumped more than 3% each.
Nifty Bank, Nifty Auto, Nifty Metal, Nifty PSU Bank also added between 2.5-3%.
5. Most active counters in terms of volume
Vodafone Idea (118.85 crore shares), Tata Silver Exchange Traded Fund (76.42 crore shares), and Tata Gold Exchange Traded Fund (38.35 crore shares) were the most active counters in terms of volume on the NSE.
6. Advance-decline ratio
2,694 stocks advanced while oNver only 534 declined in trade today on the NSE. Meanwhile, 90 remained unchanged.
7. 4 stocks jump over 15%
Welspun Living, Apar Industries, KPR Mills, and Aarti Industries were the 4 stocks that jumped more than 15% on the Nifty 500.
8. Nearly 80 stocks hit 52-week highs on NSE
Some 58 stocks, including eClerx Services, Sundaram Finance, Ashok Leyland, JSPL, SBI, Nestle India, hit their 52-week highs on the NSE.
9. 68 stocks hit 52-week lows
As many as 68 stocks, including Rainbow Childrens Medicare, Saregama India, and Reliance Infra hit their 52-week lows in intraday trade on the NSE.
10. Nifty’s technical outlook
Shrikant Chouhan, Head Equity Research, Kotak Securities is of the view that the short-term market outlook remains positive, but a strategy of buying on dips and selling on rallies would be ideal for traders.
“On the downside, retracement support is placed at 25,500/83000 and 25,350/82500, while 25,900/84300 and 26,000/84500 would act as immediate resistance levels for the bulls. However, below 25,350/82500, the uptrend could become vulnerable,” he said.
Meanwhile, Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking said, “The markets opened with a strong gap-up, with Nifty reclaiming its long-term 200-DMA at 25,250 and the 100-DMA at 25,630. The index also negated the bearish setup and managed to sustain above the 25,600 mark. On the momentum front, MACD has generated a fresh buy crossover, while RSI has rebounded from the oversold zone and moved above 50, signaling improving strength.
Meanwhile, India VIX cooled off sharply by 6% to close near 13, any further decline in volatility would provide additional comfort to the bulls. Overall, the structure for the Nifty appears positive for 26,100 levels, and a buy-on-dips approach remains advisable as long as Nifty holds above 25,250.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
