After the agreement on trade deal with America, the sentiment in the stock market improved significantly. The trade deal was announced on February 2, and on February 3, the Indian stock market saw a massive rally. However, later many questions were raised about this deal, because its details were not yet made public, including which sectors were included and which were excluded. Questions were raised especially regarding agriculture and dairy.
After this, Union Minister Piyush Goyal clarified the details of the deal. He said that agriculture and dairy have been completely kept out of this deal, thus calling the claims of American pressure as baseless. He said that this deal will benefit India a lot in the long run. He then explained in detail the benefits of each sector included in the deal.
Then it was expected that there would be a real celebration in the market on Monday, as the picture became clear regarding the deal. A huge jump was seen in the shares of those companies in the sectors which were expected to benefit the most on Monday. This happened because US President Donald Trump had signed the executive order removing 25 percent additional tariff.
The market performed as expected on Monday. Especially a tremendous rise was seen in the shares of companies doing business in America. At the end of trading, the Sensex closed 485 points higher at 84,065, while the Nifty 50 closed nearly 173 points higher at 25,867.
The first reason for real celebration
In fact, the India-US trade deal has boosted investor confidence, especially in the equity market, in which FIIs have made large purchases. Foreign investors (FPIs/FIIs) were net buyers in the first week of February, investing more than Rs 8,100 crore. This happened when they had been selling continuously for the last three months.
Another reason for the market rally:
Meanwhile, the country’s largest public sector bank, SBI, reported strong results, pushing SBI shares up nearly 7.5% on Monday. With this surge, SBI overtook ICICI Bank in market capitalization and became the second largest bank in the country. Almost all major sectors witnessed gains on Monday, including metal, banking, real estate and small and mid-cap stocks.
Retail investors happy:
Portfolios of retail investors turned green as mid-cap and small-cap stocks witnessed strong buying. Investors were seen placing bets on textile, auto and agriculture-based stocks. This happened after the rise in the US stock market on Friday.
Positive GDP forecast:
The market got another positive signal on the GDP front. Goldman Sachs has raised its forecast for India’s real GDP growth in 2026. The brokerage has raised its growth forecast by 20 basis points to 6.9% annually. The reason for this is said to be America reducing the tariff from 50% to 18%.