Market veteran Ashish Kacholia on Tuesday suggested that the bear phase in small-cap stocks may now be over, linking this shift to the newly announced US-India trade deal.
“The only problem with the market is that the biggest buying opportunity comes when we all are frozen with fear…looks like the bear market in small caps has officially ended with Donald Trump’s tweet signing a trade deal with India,” the Director – Research at Lucky Investment Managers Pvt Ltd., said on X.
Only problem with market is that the biggest buying opportunity comes when we all are frozen with fear…looks like the bear market in small caps has officially ended with Donald Trump’s tweet signing trade deal with India
— Ashish Kacholia (@LuckyInvest_ARK) February 3, 2026
As the post gained traction, many people agreed with Kacholia’s sentiment, noting that the market may have gotten its final “trigger”.
Also Read | US-India Trade Deal: What Does It Mean For The Indian Stock Market?
“I had one of the most frustrating days yesterday, and boom everything changed by late evening,” a user said.
Predicting more opportunities in the market, another said: “I think, regardless of this relief rally, as a set of 250 companies in the nifty, they’re yet to prove mid-teen earnings growth.”
I think, regardless of this relief rally, as a set of 250 companies in the nifty, they’re yet to to prove mid-teen earnings growth.
So may be there will be opportunities, who knows. Plus, all the listings scheduled this year might prove a headwind for growth.
— सौविक मित्र (@souvikstweets) February 3, 2026
Sharing his frustration, another user said Indian markets still have a long road ahead. Calling the rally modest, he remarked: “This is just a drop to quench our thirst. We need this run to last through the year if we want to regain previous highs.”
Sir with utmost respect, this is just a reaction. We have fallen too much and this is just a drop to quench our thirst. We need this run to last this year to be able to regain highs.
— Manu Shrivastava (@Manu_Speaks) February 3, 2026
Markets Turn Positive
Kacholia’s remarks came after India and the United States on Sunday night announced that a trade agreement had been secured following months of negotiation. As part of the deal, the US is set to reduce tariffs on Indian goods from 50% to 18%. This development lifted sentiment across markets on Monday, especially in beaten-down small-cap stocks.
Following the announcement, key equity benchmarks ended the day with strong gains. The Nifty closed above the 25,700 mark. All NSE sectoral indices finished in the green. Realty stocks led the rally, followed by financial services and consumer durables.
The S&P BSE Sensex jumped 2,072.67 points, or 2.54%, to end at 83,739.13. The Nifty 50 rose 639.15 points, or 2.55% to settle at 25,727.55. In the broader market, buying was strong across segments. The S&P BSE 150 MidCap Index climbed 2.79%, while the S&P BSE 250 SmallCap Index surged 2.91%. Meanwhile, the India VIX (volatility index) fell sharply by 6.99% to 12.90, signalling improved investor confidence in the near term.
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