India's stock markets surged strongly on Tuesday, February 3, 2026, after India and the U.S. agreed on a trade deal reducing tariffs on Indian goods from 25% to 18%. The BSE Sensex jumped 4,205.27 points (5.14%) to 85,871.73, while the NSE Nifty gained 1,252.8 points (4.99%) to reach 26,341.20 during the session. This sharp rise came following U.S. President Donald Trump’s announcement of the new tariff deal after a call with Prime Minister Narendra Modi. Key stocks like Adani Ports, Bajaj Finance, Bajaj Finserv, Reliance Industries, and InterGlobe Aviation rose sharply between 3.7% and 7.2%. Only ITC lagged among blue chips. Textile and leather stocks saw massive gains, with K.P.R Mill and Garware Technical Fibres up 20%, Welspun Living nearly 20%, and Bhartiya International rising 10.7%. R. Ponmudi, CEO of Enrich Money, said, "The agreement reduces reciprocal U.S. tariffs on Indian goods from 25% to 18%, removing a major overhang that had weighed on export-oriented sectors." India's exports to the U.S. dropped 1.83% to $6.88 billion in December 2025 due to high tariffs. In Asian markets, South Korea's Kospi gained 5%, while Japan, Shanghai, and Hong Kong indices also climbed. Foreign investors sold shares worth ₹1,832.46 crore, while domestic investors bought stocks worth ₹2,446.33 crore. Brent crude prices fell slightly 0.51% to $65.96 a barrel. The markets are buoyed by this landmark trade deal combined with other global trade developments and growth-focused budget expectations.