**GLOBAL MARKET BRIEF: US-INDIA TRADE DEAL SPARKS RALLY** **Major Market Move** Global equities are witnessing a significant surge today, Tuesday, February 3, 2026, driven by the landmark trade agreement between the United States and India. The deal, which slashes US tariffs on Indian goods from **50%** to **18%**, has triggered a massive risk-on sentiment across financial capitals. Investors are aggressively buying into growth sectors, reacting to the easing of geopolitical tensions and the removal of major trade barriers. The agreement also includes India’s commitment to reducing dependence on Russian oil, a strategic pivot that is reshaping energy market expectations. **Key Indices Performance** **India (The Epicenter):** Indian benchmarks are outperforming global peers with record-breaking gains. * **Sensex:** Surged over **2,270 points** to trade near **83,937**. * **Nifty 50:** Climbed **691 points** to hover around **25,780**, edging closer to its all-time high. * **Gift Nifty:** Futures indicate sustained momentum, trading above **26,190**, signaling a potential gap-up continuation. **United States:** Wall Street kicked off February on a strong note, buoyed by the trade optimism and robust manufacturing data. * **Dow Jones:** Up **1.05%** at **49,407**, driven by industrial heavyweights expected to benefit from increased cross-border commerce. * **S&P 500:** Rose **0.54%** to **6,976**, testing the psychological **7,000** barrier. * **Nasdaq:** Gained **0.56%** to reach **23,592**, as tech giants stabilize following mixed earnings reports earlier in the week. **Sector Watch** **Banking & Finance:** Large-cap financials are leading the charge. Stocks like **Axis Bank**, **ICICI Bank**, and **Bajaj Finance** are seeing gains between **4%** and **6%**, supported by renewed Foreign Institutional Investor (FII) inflows. The trade deal is expected to stabilize currency risks, making emerging market financial assets more attractive. **Technology & IT:** The tariff reduction is a major tailwind for export-heavy IT services. **Tech Mahindra** and **Larsen & Toubro** are among top performers, with expectations of increased client spending from the US. **Textiles & Manufacturing:** Sectors highly dependent on US exports—specifically textiles, seafood, and gems—are witnessing a sharp repricing. The cut in tariffs to **18%** immediately boosts margin outlooks for companies in these spaces, making them competitive against peers in Vietnam and Bangladesh. **Commodities & Energy:** * **Oil:** Brent Crude has seen volatility, dipping to around **$66.30** per barrel. The geopolitical shift regarding Russian oil is causing supply chain readjustments. * **Gold:** Precious metals are experiencing high volatility. Gold prices in India are correcting, trading near **₹141,697** per 10 grams, as risk appetite returns to equities and capital rotates out of safe havens. Global spot prices remain elevated but volatile, trading in the **$4,750** range. **Economic Outlook** The economic narrative has shifted from "tariff wars" to "trade cooperation." Analysts have upgraded India’s GDP growth projections for FY27 to **7.5%**, citing the multiplier effect of higher exports. The rupee is expected to strengthen as foreign funds—which had sold heavily in early 2025—begin to reverse course and re-enter the market. **Looking Ahead:** Traders will now focus on the upcoming Federal Reserve commentary to see if this trade optimism alters the rate-cut trajectory. For now, the "fear of isolation" for emerging markets has dissipated, replaced by a synchronized global rally.