Sensex jumped over 2,400 points after the India-US trade deal cut tariffs to 18%, before settling at 84,024 at press time.
Export-heavy sectors like textiles, chemicals, and auto parts rallied up to 14% on improved US trade access.
Gold surged over 4% to $4,870, and silver jumped 9% to $84.55, reflecting strong risk-on sentiment.
Indian stock market today is celebrating the latest US-India trade deal. After days of volatility and any significant breakouts, the market has finally had its first one on Februray 3. Sensex jumped over 2,400 points and Nifty 50 climbed nearly 3%. At press time, Sensex is trading at 84,024, up 2,358 points or 2.9%, while Nifty rose 717 points to 25,806.
Here’s an in-depth view of what happened in the stock market today based on Moneycontrol data.
The share market news was dominated by US President Donald Trump's announcement that tariffs on Indian goods would be slashed to 18% from the earlier 50%. The deal was finalized after India's commitment to reduce trade barriers and stop buying Russian oil. Finance Minister Nirmala Sitharaman welcomed the tariff reduction, calling it a major boost for the 'Made in India' initiative.
This trade treaty, after the Indian-European Free Trade Agreement, has brought fresh enthusiasm to the market. Export-focused sectors that had been struggling under high tariff pressures have rejoiced the move the most. The timing is perfect as the volatility around the Indian Union Budget 2026, which was presented on February 1, has also settled.
Although this US-India trade deal has revived the whole stock market today. Some sectors are expected to do better over the long-term than others. Analysts pointed out that export-heavy sectors will benefit the most. The other sectors that will enjoy the gains include textiles, seafood, chemicals, auto parts, and new energy businesses.
The textile sector was one of the biggest beneficiaries of the trump tariff cut. Companies with US exposure ranging from 20% to 70% are expected to see improved margins and competitiveness. Key names include Gokaldas, Welspun India, Himatsingka Seide, Trident, and SP Apparels, all of which are positioned to gain from the improved trade terms.
In the seafood segment, shrimp exporters will see the biggest surge. Apex Frozen Foods is already leading with 63% US exposure, followed by Waterbase with 40%, and Avanti Feeds with 14% exposure to American markets.
Chemical manufacturers also rallied strongly in the stock market today. India's chemical exports to America stand at around Rs. 6 billion, 18% of the total national chemical exports. Aarti Industries led gains in this sector with a 13.9% jump. Meanwhile, Gujarat Fluorochemicals rose 8.1%, and Navin Fluorine International climbed 7.2%. Companies like UPL and SRF, with US exposure ranging from 25% to 30%, are also expected to benefit, with some niche players having exposure as high as 74%.
Auto parts makers also cheered the macro development. Bharat Forge rose 8.7%, Balkrishna Industries gained 7.3%, and Samvardhana Motherson climbed 6.8%. Sona BLW Precision Forgings, identified as a key beneficiary, surged 7%. Garware Hi-Tech Films was also one of the top gainers.
Electronics manufacturing services companies gained between 4.6% and 6.5%. Dixon Technologies, Kaynes Technology, and Syrma SGS were among the top gainers.
The gem and jewellery sector received much-needed relief from the tariff reduction to 18%. This may combat the sharp increases in gold prices that have been hurting demand.
COMEX silver prices opened higher and touched an intraday high of $84.550 per ounce, logging over 9% rise against Monday's (February 2) close. COMEX gold rates also jumped, touching an intraday high of $4,870.54 per ounce within minutes of opening. The intraday gain was over 4%.
Nifty Realty jumped over 4%. Banking stocks joined the rally, with HDFC Bank trading at Rs. 952.80, up 2.66%, while ICICI Bank rose 2.69% to Rs. 1,389.20. Private banking stocks performed even better, with Nifty Private Bank rising nearly 3%. The IT sector also participated in the upside, with Nifty IT index rising 2.5%. Infosys gained 3.1%, while HCL Technologies added 2.3%. Wipro and Tech Mahindra also traded in green territory.
Adani group stocks rallied sharply ahead of key earnings announcements. Adani Enterprises surged 11.32% to Rs. 2,221.30, while Adani Green Energy jumped 11.03% to Rs. 937. Adani Ports also gained over 7%. The hike reflected renewed investor confidence in infrastructure and capital-intensive stocks.
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Angel One climbed 9.67% to Rs. 2,633.60, while CDSL and Godrej Properties both rose over 9%. Godrej Properties stayed in focus. The company has sold plots worth over Rs. 1,000 crore at the launch of its Evora Estate project in Panipat.
Reliance Industries' share price was at Rs. 1,448.20, up 4.16%. The stock's performance, along with strength in M&M, Sun Pharma, and Maruti Suzuki, showed that large-cap names were driving much of the index movement.
The stock market today showed signs of recovery and investor enthusiasm on the US-India trade deal. A slowdown in FII outflows is likely, while the inflows may increase, India rupee may become stronger. Export-facing mid and small-cap stocks that faced selling pressure are expected to see stabilization and renewed buying interest. Bulls are already outweighing bears. As the afternoon progresses, the investor focus would be on whether Nifty can consolidate above the 25,800 mark. If it holds, the uptrend is expected to continue.
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1. Why did the stock market go up today?
The stock market increased today mainly because of the India-US trade agreement. The US decided to lower taxes on Indian goods to 18%, which made investors feel better. Companies that focus on exports gained the most, and the overall feeling in the market became good after some unstable days.
2. How much did Sensex and Nifty gain today?
Sensex went up by over 2,400 points, which is almost a 3% increase today. Nifty 50 also went up a lot, adding about 717 points. Both indices reached new highs during the day, showing a strong rise in many different areas.
3. Which sectors benefited the most on India-US deal?
Areas that depend on exports gained the most from the agreement. This includes textiles, seafood, chemicals, auto parts, electronics, and jewelry. Lower taxes improve profits, increase competition, and increase requests from US markets for Indian exporters.
4. Why did Adani group stocks rise today?
Adani group stocks went up because of the good feeling in the market and hopes about upcoming earnings. Investors showed new interest in building and capital-heavy stocks. The general market rise also helped increase buying in Adani Enterprises, Adani Green Energy, and Adani Ports.
5. What is the future outlook for the stock market?
Experts think the trade agreement might help reduce foreign investor selling and help the rupee. Export-focused mid and small-cap stocks might see consistent buying. Yet, markets might still be picky, watching global news, earnings, and policy changes closely.