03.02.202604:42:13UTC+00Sensex Hits 3-Week High After Trade Deal

The BSE Sensex saw a significant increase of 2,036 points, or 2.5%, reaching 83,702 during Tuesday's morning trading, thus continuing its upward trend and achieving its peak since January 12. This rise followed a major development in the US-India trade agreement, which reduced tariffs from 50% down to 18%. Similarly, the Nifty 50 index increased by 2.5%, surpassing the 25,700 mark, while small-cap and mid-cap stocks experienced growth of 2.6% and 2.7%, respectively. This surge comes in the wake of US President Donald Trump's announcement via social media regarding the trade deal, following a conversation with Indian Prime Minister Narendra Modi. An important element of the deal was India's commitment to discontinue Russian oil purchases and reduce trade obstacles for US exports. The positive sentiment was further bolstered by a rally on Wall Street, largely driven by gains in tech stocks as traders shifted their focus back to the earnings season. Every sector traded positively, with the auto industry leading the way, followed by banking, technology, healthcare, and pharmaceuticals sectors. Noteworthy performers included Adani Ports with a 7.1% increase, Bajaj Finserv rising by 4.9%, Bajaj Finance up by 4.8%, Sun Pharmaceuticals advancing by 3.7%, Mahindra & Mahindra improving by 3.6%, and L&T, which grew by 3.5%.