Indian equities delivered a blockbuster rally on 3 February 2026 as investors cheered confirmation of a trade pact between India and the United States. The agreement reduces reciprocal tariffs on Indian exports to 18 % from 50 %, removes a 25 % duty linked to Indian purchases of Russian crude and commits India to purchase US energy. This clarity removed a major overhang from the Union Budget sell‑off, encouraging foreign portfolio investors and domestic institutions to deploy capital. Benchmark indices surged around 2.5 %, driven by heavy buying in large‑caps and export‑linked sectors such as textiles, leather and speciality chemicals. Global risk appetite also improved after Asian and US markets rebounded from a metals‑led sell‑off, further boosting sentiment. The rally lifted the market capitalisation of BSE‑listed companies by roughly ₹12 lakh crore and pushed the rupee up more than a rupee to 90.30 per US dollar.
Top indices
Index
Closing level
Change (pts)
% change
Notes
Nifty 50
25,713.30
+624.90
+2.49 %
Close above the psychological 25,700 mark; range‑bound consolidation with positive bias.
BSE Sensex
83,700.75
+2 034.29
+2.49 %
Surged over 2,000 pts on trade deal euphoria.
Rupee (₹/$)
₹90.30
+1.19
+1.31 %
Appreciated on strong capital inflows and improving trade outlook.
Gold (MCX futures)
₹1,46,000/10 g
+~3 %
Gold and silver rebounded sharply after recent sell‑off, reflecting safe‑haven demand and currency moves.
India VIX
13.5 (approx.)
—
–
Volatility eased but remained elevated as traders digested the Budget and trade deal.
Sectoral performance
The day saw a wide divergence between outperforming sectors linked to exports and sectors hurt by the trade deal. Average percentage changes for broader sector indices are summarised below.
Top performing sectors
Avg. % change
Drivers
Printing & Stationery
+7.28 %
Beneficiaries of tariff cuts and government education schemes.
Cables
+4.48 %
Infra push and order wins.
Castings/Forgings/Fasteners
+4.12 %
Anticipation of higher export orders and defence capex.
Top losing sectors
Avg. % change
Reasons
Energy
–17.11 %
Profit taking in oil & gas stocks after surge and concerns over lower crude tariffs.
Commercial services
–9.16 %
Weak earnings visibility.
Healthcare services
–5.74 %
Rotation away from defensives.
Realty
–5.07 %
Rising bond yields and profit booking.
Logistics & Cargo
–4.58 %
High base and worries about margin pressure.
Key statistics
Market breadth: Out of ~4,675 securities traded on the BSE, 3,579 advanced while 1,096 declined, implying that ~76 % of stocks closed in the green.
Turnover and capitalisation: Market capitalisation of all BSE‑listed firms rose by more than ₹12 lakh crore to about ₹4.67 trillion. Cash market turnover surged amid heavy institutional participation.
Institutional flows: Provisional data showed foreign portfolio investors (FPIs) were net sellers of around ₹1,860 crore, while domestic institutional investors (DIIs) bought nearly ₹1,760 crore. Despite FPI selling, the rally indicates heavy short covering and domestic buying.
Currency & commodities: The rupee strengthened to ₹90.30 per US dollar on expectations of improved current‑account dynamics. Gold and silver prices rebounded more than 3 % after their steepest two‑day fall in decades, as traders covered short positions.
Top gainers & losers
Nifty 50 constituents
Top gainers (closing price)
% gain
Rationale
Adani Ports & SEZ
+7.05 %
Strong January cargo volumes and optimism about export tariffs.
Bajaj Finance
+6.09 %
Pre‑result optimism on loan growth and margin resilience.
Energy sector under pressure; concerns over lower tariffs and profit‑taking.
Power Grid Corp
–1.30 %
Sector rotation away from utilities.
UltraTech Cement
–1.18 %
Cement stocks cooled after budget‑day spike; valuations remain high.
Hindustan Unilever
–0.58 %
Consumer staples lagged in risk‑on rally.
Broader market highlights
Other notable gainers included Maruti Suzuki (+2.77 %), InterGlobe Aviation (+5.53 %), Eicher Motors (+3.29 %), Adani Enterprises (+10.38 %) and Apollo Hospitals (+2.24 %). The standout decliner was Tech Mahindra (–0.44 %).
What moved the market
India–US trade deal: The major catalyst was a surprise announcement that India and the United States concluded a comprehensive trade pact. Washington agreed to cut reciprocal tariffs on Indian goods to 18 % from 50 % and dropped the 25 % duty on Indian purchases of Russian oil, while India committed to import more US energy and relax some market‑access barriers. The agreement removes a key overhang that had weighed on markets after the Union Budget and improves the outlook for exporters.
Short covering and heavy domestic buying: Foreign portfolio investors remain net sellers, but the magnitude of the rally suggests substantial short covering in index futures and strong buying by domestic institutions. Index heavyweights in banking, finance and autos led the gains.
Strong global cues: Asian equities surged after two days of steep losses; South Korea’s benchmark jumped nearly 7 % and Japan’s Nikkei rose almost 4 % as investors bought technology and AI‑linked stocks. US indices also bounced overnight on better‑than‑expected manufacturing data. The improved global tone and a weaker US dollar supported risk assets.
Commodity reversal: Gold and silver recovered sharply after their largest two‑day drop since 2008, which eased fears of a broad market contagion. Lower metals volatility and a stronger rupee reduced concerns about imported inflation.
Sector rotation: Export‑oriented sectors such as textiles, leather, speciality chemicals and capital goods rallied on expectations of tariff reductions. Conversely, energy stocks fell sharply as traders anticipated reduced margins from lower crude tariffs.
Global cues
GIFT Nifty futures traded about 4.4 % higher early in the day, signalling a massive gap‑up opening for domestic indices.
Asia: The MSCI Asia Pacific Index climbed over 1.5 %; South Korea’s Kospi rallied nearly 7 %, and Japan’s Nikkei 225 gained about 3.9 %. The rebound followed a calmer session in metals markets and optimism over the India‑US deal.
US: Wall Street ended higher overnight. The S&P 500 gained roughly 0.5 %, and the Nasdaq 100 rose 0.7 % as strong manufacturing data offset uncertainty around Federal Reserve leadership appointments.
Currencies/commodities: The US dollar softened against major Asian currencies. Gold and silver prices rebounded strongly, while crude oil remained range‑bound as traders assessed the impact of the trade pact on energy flows.
Stocks to watch (earnings & corporate actions)
Scheduled results and events
Company/Theme
Focus/Reason
Bajaj Finance
Q3 results due; investors will watch asset quality, loan growth and margin guidance.
Aditya Birla Capital
Results due; trends in lending, insurance and profitability in focus.
Mankind Pharma
Post‑market results; watch for volume growth and margin outlook.
Pidilite Industries
Earnings expected; commentary on demand trends and margins important.
Solar Industries
Results scheduled; defence order inflows and margins under watch.
Varun Beverages
Results; beverage volumes and seasonal outlook key.
NMDC
Results after market; iron‑ore volumes and pricing trends to be tracked.
V2 Retail
Board meets to consider stock split; may spur speculative interest.
Studds Accessories
End of 3 % anchor lock‑in; supply from early investors may weigh on stock.
Akums Drugs
End of 20 % anchor lock‑in; supply overhang.
PB Fintech
Reported strong Q3 results and board approved a fund raise via QIP; could see continued momentum.
PG Electroplast
Posted robust year‑on‑year results and guided for expansion; could attract buying.
Indus Towers
Reported weak results with declining EBITDA and margins; may face selling.
Unichem Laboratories
USFDA issued observations at Kolhapur API facility; regulatory risk.
CreditAccess Grameen
Clarified that promoter stake sale reports were speculative; stock could stabilise.
Brigade Hotel Ventures
Signed an MoU with Tamil Nadu government for ₹1,100 crore investment to build three hotels in Chennai, adding over 500 rooms.
Expanded multi‑year digital partnership with Madison Square Garden group; strengthens sports and media presence.
Coal India
Upgraded pay scales for mid‑level officers effective retroactively; financial impact estimated at ₹3,400 crore.
IRB Infrastructure
Transferred Gandeva–Ena HAM project to its InvIT for ₹513 crore, reducing debt by about ₹700 crore.
Tata Power
Commissioned a 198 MW wind project in Tamil Nadu to supply power to Tata Steel; record execution timeline.
Aditya Birla Lifestyle
Reported double‑digit revenue and EBITDA growth; approved issuance of NCDs up to ₹500 crore.
Olectra Greentech
Posted mixed results; revenue and EBITDA grew but net profit remained flat.
Corona Remedies
Reported healthy revenue and EBITDA growth but a decline in net profit.
Other notable corporate news
Adani Ports & SEZ: January cargo volumes were 44.8 MMT, up 12 % YoY, with year‑to‑date volumes up 18 %. The strong throughput drove the stock’s rally.
Maruti Suzuki: January production totalled 2,26,000 units (up from 2,06,000 a year earlier), with passenger vehicle output rising while light commercial vehicle output fell.
Power Grid: A subsidiary commissioned a 4.5 GW transmission scheme.
NTPC Green: Signed an MoU with Assago Industries to supply green ammonia, CO₂, renewable power and utilities.
Tata Chemicals: Announced plans to invest ₹515 crore in an integrated vacuum salt and soda ash plant.
Sundaram Finance: Increased its borrowing limit to ₹16,000 crore.
BLS International: Acquired a 95 % stake in Bahrain‑based MVA International, expanding its visa and passport processing business.
Zen Technologies: Appointed a new CFO and re‑appointed its chairman & MD for a further three years.
ACME Solar: Received commissioning certificates for part of a 100 MW wind project.
Tata Steel: Injected ₹5,754 crore into its foreign subsidiary T Steel Holdings.
Jash Industries: Received NCLT approval for merging Shivpad Engineers with Jash Engineering.
Technical levels & outlook for 4 Feb 2026
Nifty 50
Zone
Level range
Interpretation
Major support
24,850 – 24,900
Post‑budget base; a break below could signal deeper correction.
Immediate support
25,000 – 25,050
Psychological holding zone; bulls likely to defend dips here.
Neutral range
25,050 – 25,200
Consolidation band; likely to see choppy trade.
Immediate resistance
25,250 – 25,350
Supply zone; profit‑booking expected on approach.
Upper resistance
25,500 +
Upside extension if follow‑through buying emerges.
Bank Nifty
Zone
Level range
Interpretation
Major support
58,200 – 58,400
Structural base; sustained breach may trigger weakness.
Immediate support
58,500 – 58,650
Short‑term cushion.
Neutral range
58,650 – 58,900
Sideways consolidation area.
Resistance
59,000 – 59,300
Supply zone; breakout could open room toward new highs.
Expected market tone for Wednesday
Bias: After Tuesday’s explosive rally, the market is likely to consolidate. A positive bias remains as long as Nifty holds above the 25,000–25,050 support zone; dips toward this area may attract buying.
Volatility: Volatility should cool gradually but remain elevated given ongoing Budget debates and earnings announcements. Traders may adopt a range‑bound strategy between 25,050 and 25,350 until fresh triggers emerge.
Focus areas: Watch capital goods, textiles, speciality chemicals and hospitality stocks for continued strength from the trade‑deal tailwinds. Energy, utilities and select FMCG names may underperform as investors rotate into high‑beta plays. Earnings releases and management commentary will drive stock‑specific moves.
Macro cues: Keep an eye on US labour‑market data and comments from Federal Reserve officials for clues on global risk sentiment. Any follow‑through announcement on tariff implementation timelines or potential retaliation from other trading partners could also sway markets.
