Market Brief: India-US Trade Deal Sparks Equity Surge Indian benchmark indices recorded a strong performance on Monday, February 9, 2026, as investor sentiment was bolstered by the formalization of an interim trade deal framework between India and the United States. The **BSE Sensex** surged **485.35 points**, closing at **84,065.75**, while the **NSE Nifty 50** appreciated by **173.60 points** to settle at **25,867.30**. The market rally was primarily driven by news that the U.S. has reduced reciprocal tariffs on Indian exports to **18%**, down from a previous effective rate of **50%**. This breakthrough has significantly eased concerns over trade barriers and is expected to benefit export-oriented sectors such as textiles, aerospace, and seafood. In exchange, India has committed to purchasing over **$500 billion** in U.S. energy, technology, and agricultural products over the next five years. Foreign Institutional Investors (FIIs) have shown a notable shift in behavior, turning into net buyers after a heavy selling streak in January. On the latest trading session, FIIs infused approximately **₹2,254.60 crore** into the cash market. This return of foreign capital, coupled with the **RBI** holding interest rates steady at **5.25%**, has provided a stable macroeconomic backdrop for the current consolidation phase. Sectoral performance remained largely positive, led by Public Sector Undertaking (PSU) banks. The **Nifty PSU Bank** index climbed **2.83%**, fueled by strong quarterly earnings from heavyweights like State Bank of India, which hit a record high. Other gaining sectors included Real Estate, which rose **2.64%**, and Consumer Durables, up **2.76%**. Technical indicators suggest a strengthening bullish trend. The **Relative Strength Index (RSI)** for the Nifty is currently positioned near **53**, reflecting neutral-to-positive momentum. Analysts identify immediate resistance for the Nifty at the **25,900** to **26,000** level. Support is firmly established at **25,500**, providing a floor for the market's gradual recovery. While global factors and currency fluctuations remain influential, the Indian Rupee has shown resilience, stabilizing near **90.70** against the U.S. Dollar. This currency stability, combined with the reduction in geopolitical trade uncertainty, has successfully shifted the market tone toward a "cautious risk-on" sentiment as midcap and smallcap indices continue to outperform the broader benchmarks.