India-US Trade Deal Sparks Investor Confidence in Indian Markets

The Indian stock market witnessed a dramatic upswing as investors' wealth increased by Rs 12.10 lakh crore, fueled by the India-US trade deal. The 30-share BSE Sensex recorded a substantial rise of 4,205.27 points, reaching a peak of 85,871.73 before closing at 83,739.13, marking a 2.54% increase.

This surge in equities was primarily driven by expectations set by the India-US trade agreement, which allayed tariff concerns that have pressured the markets since April 2025. According to A Balasubramanian, Managing Director & CEO of Aditya Birla Sun Life AMC Ltd, the deal enhances capital flow visibility, boosts the rupee, and encourages manufacturing investments.

Significant gains were seen in sectors like textiles, auto ancillary, and specialty chemicals. Adani Ports led the gainers, while Bajaj Finance, InterGlobe Aviation, and Reliance Industries also performed strongly. The trade agreement reduced US tariffs on Indian goods, further strengthening India's position in global markets and supporting export-driven industries.