Markets Open Higher on India-US Trade Deal Optimism

The Nifty 50 index opened at 25,888.70, gaining 195 points or 0.76 per cent, while the BSE Sensex opened at 84,177.51, up 597.11 points or 0.71 per cent.

Market expert Ajay Bagga said the removal of punitive US tariffs and implementation of the India-US trade deal framework has provided a major boost to market sentiment. He added that markets favour clarity and the progress in the agreement has led to follow-through buying in futures trading.

Bagga noted that three major catalysts are supporting the markets — improving earnings outlook, the Union Budget’s infrastructure and fiscal push, and progress in the India-US trade deal. He added that future movement would depend on foreign portfolio investor flows.

Broader market indices also opened firm. The Nifty 100 rose 0.72 per cent, the Nifty Midcap 100 gained 0.66 per cent and the Nifty Smallcap 100 climbed 0.85 per cent, indicating broad-based buying.

Sectoral indices traded in positive territory, with Nifty PSU Banks rising over 2 per cent, Metal index up 1.5 per cent, IT gaining 0.6 per cent, Auto rising 0.56 per cent and FMCG up 0.3 per cent.

Precious metals continued to rally, with gold rising 1.51 per cent to Rs 1,57,693 per 10 grams and silver surging 5.35 per cent to Rs 2,63,258 per kg.

Sunil Gurjar, SEBI-registered analyst and founder of Alphamojo Financial Services, said the Nifty has recovered losses of the past three weeks, reflecting strong buying. He noted that a sustained move above 26,400 could confirm further upside momentum, while a fall below 24,650 may trigger downside pressure.

Global cues were supportive after a rebound in US markets on Friday and strong Asian markets. The Japanese government also secured a landslide win in snap elections on February 8, signalling public backing for its fiscal stimulus and tax-cut policies.