Last Updated on February 4, 2026 12:16 am by INDIAN AWAAZ
AMN / BUSINESS REPORTERS
India’S DOMESTIC equity markets witnessed a powerful rebound on Tuesday, registering their biggest single-day point gain in over a year, buoyed by a landmark India–US trade agreement that eased tariff pressures and revived foreign investor confidence. The 30-share BSE Sensex surged 2,072.67 points, or 2.54 per cent, to close at 83,739.13—its sharpest point-wise rally since November 22, 2024. The NSE Nifty 50 jumped 639.15 points, or 2.55 per cent, to settle at 25,727.55.
The rally was broad-based and driven by aggressive buying from Foreign Portfolio Investors (FPIs), who turned net buyers after weeks of sustained outflows. According to provisional exchange data, FPIs infused ₹5,426.24 crore into Indian equities on Tuesday, reversing part of the nearly ₹30,000 crore withdrawn so far in 2026.
Market sentiment improved sharply after the US agreed to reduce reciprocal tariffs on Indian imports from 25 per cent to 18 per cent and withdrew the additional 25 per cent punitive levy linked to India’s purchase of Russian oil. This effectively lowered the overall tariff burden by around 32 per cent, significantly improving the outlook for Indian exports and cross-border trade flows.
Despite opening near record highs, both benchmark indices saw intraday volatility before stabilising, supported by buying at lower levels. The India VIX dropped 7 per cent to 12.89, indicating easing investor anxiety. The Indian rupee also strengthened sharply, appreciating nearly 1.40 per cent against the US dollar, aided by improved capital flow expectations.
Market breadth remained decisively positive, with advancing stocks far outnumbering decliners. Mid- and small-cap stocks outperformed, reflecting strong risk appetite. Overall market capitalisation of BSE-listed companies rose by around ₹12.10 lakh crore.
Sector-Wise Performance and Key Beneficiaries
Export-Oriented Sectors:
Engineering goods, textiles, chemicals, fisheries, auto ancillaries and electronics manufacturing services (EMS) stocks gained sharply, as lower tariffs enhance global competitiveness and earnings visibility.
Financials and Banking:
The Nifty Financial Services index rose over 3 per cent, while the Nifty Bank gained more than 2 per cent. Improved growth visibility and stronger capital inflows are expected to drive second-order gains for lenders.
Infrastructure and Energy:
Infrastructure, energy and utilities stocks advanced strongly on expectations of higher investment flows and expanded trade-linked projects. Adani Group stocks led gains on hopes of stronger energy trade ties and infrastructure opportunities.
Realty:
Real estate stocks emerged as top sectoral performers, rallying nearly 5 per cent, supported by improving liquidity conditions and positive demand outlook.
Pharma and Healthcare:
Pharma stocks also moved higher, aided by improved export prospects and easing regulatory uncertainties.
Technology and FMCG:
IT stocks underperformed marginally, reflecting lingering global demand concerns, while FMCG names remained largely range-bound.
Outlook
Analysts expect near-term momentum to remain positive as trade-related uncertainty fades, FPI flows stabilise and the rupee recovers. However, they caution that the Nifty must sustain above the 25,400–25,500 zone, with the upcoming RBI monetary policy decision likely to keep volatility elevated.
https://biznama.com/stock-market-feb-3