Indian equity markets witnessed renewed optimism after the United States announced that it had reached a trade agreement with India following discussions between US President Donald Trump and Prime Minister Narendra Modi. The development raised expectations of improved bilateral trade ties and eased concerns around tariffs, boosting investor sentiment.
Early signals from the GIFT Nifty pointed to a strong start for domestic markets, as the index recorded a sharp rise, reflecting confidence among global investors. Market participants viewed the agreement as a positive trigger that could support economic growth and strengthen trade flows between the two countries.
The announcement also helped Indian benchmark indices recover sharply during the session. The Sensex and Nifty closed higher, supported by buying interest across sectors. Heavyweights from banking, infrastructure, and energy contributed to the rally, while midcap and smallcap stocks also moved up.
Experts noted that beyond immediate tariff-related benefits, the trade deal signals a revival of constructive dialogue between India and the US. They believe this could pave the way for deeper economic cooperation in the coming months, providing sustained support to Indian markets.
