Dalal Street roars! Sensex jumps 2,000+ points after Trump’s India–US deal

At the opening bell, both the BSE Sensex and the NSE Nifty jumped strongly, reflecting positive investor sentiment following the breakthrough.

By around 10:40 am, the Sensex was up nearly 2,300 points, while the Nifty gained more than 726 points.

The rally followed an announcement by US President Donald Trump on Monday that Washington had finalised a trade deal with New Delhi and reduced tariffs on Indian goods to 18%, easing bilateral tensions that had persisted since last year.

Under the agreement, the United States will immediately lower its reciprocal tariff on Indian imports from 25% to 18%. Announcing the decision on Truth Social, Trump said the deal was reached “out of friendship and respect” for Prime Minister Narendra Modi. He added that India has agreed to eliminate tariffs and non-tariff barriers on US goods.

Trump also said India would halt purchases of Russian oil and significantly increase energy imports from the United States, linking the move to broader efforts to end the war in Ukraine.

Prime Minister Narendra Modi welcomed the tariff revision and praised Trump’s leadership, calling it “vital for global peace, stability and prosperity”.

“Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” Modi said in a post on X.

“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation. President Trump’s leadership is vital for global peace, stability and prosperity. India fully supports his efforts for peace,” he added.

The agreement reportedly includes broader commercial commitments, with India expected to expand purchases of American products across sectors such as energy, technology and agriculture.

The breakthrough comes after months of tariff-related tensions between the two countries, during which the US imposed steep levies on Indian goods, including penalties linked to India’s imports of Russian oil.

Trump’s announcement also follows New Delhi’s presentation of the Union Budget a day earlier, parts of which were aimed at mitigating the impact of higher US tariffs on Indian exports.

The development coincided with External Affairs Minister S Jaishankar’s visit to the United States for a ministerial meeting on critical minerals, underscoring the broader strategic context of the agreement.

India–US trade negotiations had slowed sharply last August after Washington imposed higher tariffs in response to India’s continued purchase of Russian oil, triggering months of diplomatic and economic friction.

The impasse began to ease in September when Trump expressed optimism about resolving the dispute. Momentum picked up in December following a phone conversation between Trump and Modi, during which the two leaders reviewed progress in bilateral ties and discussed cooperation in critical technologies, energy, defence, security and trade.

In January, US Ambassador to India Sergio Gor said the two countries were close to finalising a trade agreement, setting the stage for this week’s announcement.