Historic Market Rally: Indian Stocks Add ₹13 Lakh Crore in Single Session
Indian equity markets experienced one of their most spectacular trading sessions in recent history on Tuesday, February 3, 2026, as benchmark indices soared following the announcement of a landmark trade agreement between India and the United States. The breakthrough in bilateral trade negotiations triggered massive buying across sectors, resulting in unprecedented wealth creation for investors.
Market Performance Highlights
The benchmark BSE Sensex witnessed an extraordinary surge, jumping more than 4,200 points during the trading session to reach an intraday high of 85,871.73 points, representing a gain of 5.1%. Similarly, the Nifty 50 index climbed 1,252 points to settle at 26,341.2 points, marking a substantial 5% increase.
What made this rally particularly remarkable was the sheer velocity of wealth creation. Within just the first 15 minutes of trading, investors saw their portfolio values expand by approximately ₹13 lakh crore. The total market capitalisation of companies listed on the Bombay Stock Exchange (BSE) vaulted to an impressive ₹468.32 lakh crore, reflecting the intensity and breadth of buying activity across market segments.
Primary Catalyst: India-US Trade Agreement
The driving force behind this monumental market movement was the formal announcement of a comprehensive trade pact between India and the United States. After months of intense negotiations and diplomatic efforts, U.S. President Donald Trump confirmed that reciprocal tariffs on Indian goods would be substantially reduced to 18%, a dramatic cut from the previous rate of 50%.
In a reciprocal arrangement, India agreed to significantly lower both tariff and non-tariff barriers on American products, effectively bringing them down to zero. This mutual concession framework represents a major breakthrough in bilateral trade relations that had been strained by protectionist measures and trade uncertainties.
Market Impact and Investor Sentiment
The trade agreement removed what market analysts had described as a major overhang that had clouded the investment outlook for several months. Investors interpreted this development as a decisive step toward restoring trade stability between the world's largest economies, which is expected to have far-reaching implications for India's export prospects and global supply chain positioning.
The market response was immediate and overwhelming, with buying activity spreading across sectors. Financial experts noted that the rally was particularly broad-based, indicating renewed confidence among both domestic and international investors who had been adopting a cautious approach amid the previous trade uncertainties.
Broader Economic Implications
Beyond the immediate market gains, the trade deal is expected to have significant positive implications for India's economic trajectory. The reduction in trade barriers is likely to boost export-oriented sectors, enhance manufacturing competitiveness, and strengthen India's position in global value chains. Market participants anticipate that this development could attract renewed foreign investment flows and support sustainable economic growth in the coming quarters.
The spectacular market performance on February 3, 2026, will be remembered as a watershed moment that demonstrated how decisive policy developments can transform investor sentiment and create substantial wealth in a remarkably short timeframe.
