U.S.-India trade deal slashes tariffs, sparking record stock gains in India.

On February 3, 2026, Indian stock markets reached all-time highs following the U.S. revealed a significant trade agreement that lowered tariffs on Indian goods from 50% to 18%, increasing investor confidence and causing widespread gains in a number of industries, including banking, IT, automotive, and pharmaceutical. Expectations of increased exports, faster economic growth, and fresh foreign investment propelled the BSE Sensex up more than 3,600 points to 85,323 and the Nifty 50 up 4.86% to 26,308. Global markets responded favorably, the rupee appreciated, and analysts described the deal as a game-changer for India's economic prospects.