**MARKET BRIEF: Nifty 500 Momentum & Trade Deal Rally** **Date:** February 3, 2026 **Market Overview** Indian equity markets witnessed a sharp resurgence following the conclusion of the **India-US trade deal**, which reduced US tariffs on Indian exports to **18%**. This macro catalyst fueled a broad-based rally, pushing the Nifty 50 above **25,700** intraday on February 3, up nearly **3%**. Sentiment has shifted decisively from post-budget caution to renewed optimism, with analysts projecting the Nifty could target **30,000** by year-end. **Technical Breakouts (Nifty 500)** Data from February 2 signaled an early improving trend, where **19 Nifty 500 stocks** triggered fresh breakouts, closing above their 200-day moving average (200-DMA). Of these, **11 stocks** surged more than **3%**, confirming strong accumulation by institutional buyers before the broader trade deal announcement. **Key Stock Movers** * **Mahindra & Mahindra (M&M):** Continuing its bullish run, the stock traded near **₹3,530** on February 3, building on a **3%** gain from the previous session. Momentum is supported by robust Q3 earnings and renewed buying in the auto sector. * **Polycab India:** After closing strong at **₹7,036** on February 2, the stock consolidated gains around **₹6,890**. The wires and cables manufacturer remains a key beneficiary of the infrastructure push, maintaining its trajectory well above long-term support levels. * **Petronet LNG:** The stock advanced over **2.5%** intraday to **₹297**, driven by a new **15-year contract with ONGC** and positive sector headwinds. The breakout above its 200-DMA at **₹288** is now solidified by heavy trading volumes. **Sector Watch** Export-oriented sectors—specifically **Textiles, Gems & Jewellery, and Engineering**—are seeing immediate repricing due to the tariff reduction. The **Nifty Oil & Gas** and **Auto** indices are currently leading the sectoral performance charts.