📈 Historic India–US Trade Deal Sparks Market Optimism 03-Feb-2026

📰 News & Impact A historic breakthrough was announced late last night as the India–US trade deal was finalized. Under this agreement, US tariffs on Indian goods have been reduced sharply from 50% to 18%, making India one of the most favorably treated Asian trade partners. This landmark move is expected to significantly boost India’s exports, support rupee appreciation, and improve overall market sentiment. Over the last 12 months, India has now signed five major trade agreements with global economies including the UK, European Union, Oman, and New Zealand, strengthening India’s position in global trade. 🎯 Key Beneficiary Sectors The sharp tariff reduction is likely to positively impact the following sectors: Textiles & Apparel Leather Products Gems & Jewellery Frozen & Processed Foods Auto Ancillaries Seafood Exports Pharmaceuticals Chemicals & Fertilizers Manufacturing & Engineering 📊 Market Outlook – Strong Gap-Up Expected Market sentiment has improved significantly following the trade deal announcement. GIFT Nifty indicates a sharp upside of ~1,000+ points, suggesting a strong gap-up opening. Earlier concerns around high US tariffs had led to FII selling and pressure on equities. With tariffs now sharply reduced, FII short covering and renewed inflows into Indian equities are expected. Strong Q3 earnings, a growth-oriented Union Budget, and easing global risks further support the bullish outlook. 🔍 Sectoral Focus for the Day 🇺🇸 US–India Tariff Reduction (18%) Positive momentum expected in: Export-oriented manufacturing Pharma & chemicals Auto components Consumer export sectors 🛢️ Oil Marketing & Aviation Falling crude prices (~$66/bbl) Stable USD/INR ➡️ Positive for oil marketing companies and airline stocks 🔩 Metals Metal stocks have corrected 10–15% from recent highs Valuations look attractive for a rebound 🏦 PSU Banks Government considering raising foreign ownership limit to 49% from 20% Expected to improve capital availability and long-term growth prospects 🌏 Global Market Cues Asian Markets: Japan, South Korea, Taiwan up as much as 4% US Markets: Dow Jones +1%, S&P 500 near all-time highs European Markets: Germany & France indices up ~1% 💰 Commodities & Macro Snapshot Gold: Rebounded after sharp correction Crude Oil: Fell 5% to ~$66/bbl on easing geopolitical tensions FIIs: Net sellers DIIs: Net buyers, supporting domestic markets 📉 Technical View – Indices Nifty 50 Holding above 25,000 keeps bullish structure intact Upside levels: 25,250 – 25,350 Below 25,000: weakness towards 24,900 – 24,700 Bank Nifty Needs to sustain above 58,750 Upside levels: 59,000 – 59,250 Support: 58,250 – 58,000 📝 Conclusion The India–US trade deal marks a turning point for Indian markets, especially export-driven sectors. Combined with strong earnings, supportive domestic policy, and improving global cues, the outlook remains constructively bullish with volatility-driven opportunities. ⚠️ Disclaimer This content is for educational and informational purposes only. We are not SEBI registered. The views expressed here are personal opinions based on publicly available information and market data. Investments in securities markets are subject to market risks. Please consult a SEBI-registered financial advisor before making any investment decisions.