Sensex soars 2,300 points, Nifty tops 25,800 as India–US Trade Deal sparks market rally
Indian equity markets opened the week with a sharp rally on Monday. Investors cheered the long-awaited India–US trade deal. The agreement eased months of uncertainty. As a result, confidence returned fast.
At the opening bell, the Sensex jumped nearly 2,300 points. At the same time, the Nifty surged close to 700 points. By 9:31 am, the Sensex traded near 83,967. The Nifty hovered around 25,790. The mood shifted from caution to optimism within minutes.
The trigger remained clear. The trade deal cut US tariffs on Indian goods from 50% to 18%. This issue had weighed on markets for months. Export-linked sectors felt the pressure earlier. Now, clarity changed sentiment instantly.
Moreover, traders rushed to unwind defensive positions. Short covering added strength to the rally. Buying spread across sectors early in the session.
Market experts welcomed the move. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, called the deal transformational. He said the announcement marked a breakthrough moment for India. He added that the delay in the deal had held markets back.
According to him, the impact will run deep. Higher exports to the US could lift India’s growth rate to around 7.5% in FY27. Corporate earnings could rise faster as well. He expects earnings growth of 16–18% in FY27. He also sees the rupee gaining strength.
In addition, Vijayakumar highlighted the bigger picture. Progress on the India–EU trade pact adds another tailwind. A growth-focused Union Budget has also helped sentiment. Together, these factors could revive risk-taking across the economy.
He said markets had built heavy short positions ahead of the deal. Once clarity arrived, traders rushed to cover. That move added fuel to the rally. He expects the upswing to stay broad-based.
Large-cap stocks could lead the next phase. Foreign investors may return to familiar names. Banking leaders, non-banking financials, and blue-chip stocks in telecom, capital goods, and IT could gain momentum. Textile stocks may also draw attention due to export exposure.
Meanwhile, technical indicators also supported the move. Shrikant Chouhan, Head of Equity Research, pointed to a clear turnaround. Early in the session, both indices tested key support levels. The Nifty held near 24,700. The Sensex found support near 80,400.
After that, buyers stepped in. The Nifty bounced more than 400 points from its low. The Sensex climbed over 1,300 points from intraday weakness. This rebound signaled strong buying interest.
Intraday charts now show a reversal pattern. According to Chouhan, traders have shifted gears. They now prefer aggressive buying over cautious positioning. A strong bullish candle on the daily chart confirms the change.
He believes the broader trend has turned constructive. The recent gains look structural rather than temporary. For now, he advises buying on dips instead of chasing sharp rallies.
Looking ahead, several factors align in favor of equities. The trade deal removed a major overhang. Foreign investor interest has started to improve. Earnings expectations look stronger. Technical signals also point upward.
Therefore, Monday’s rally may not stand alone. It could mark the start of a stronger phase for Indian markets. If momentum holds, fresh record highs may not stay far away.
