Sensex jumps 2,500 points after Trump slashes tariff on India; Nifty surges 700 points

What happened: US President Donald Trump cut tariffs on India from 50 percent to 18 percent, triggering a massive surge in the Indian stock market.

Why it matters now: The announcement eased global trade concerns and boosted investor sentiment just a day after Budget 2026 jitters.

What changes for people: Import-heavy sectors may get relief, while equity investors see strong intraday gains across indices.

Who is affected: Traders, import-dependent industries, IT–realty sectors, and global market-linked businesses.

Markets soar as tariff cut fuels optimism

Indian equity markets roared back to life on February 3, reacting sharply to the US decision to slash tariffs imposed on Indian goods.

With global trade uncertainty easing, both benchmark indices opened with strong upward momentum.

The Sensex jumped 2,500 points (2.9 percent) to trade at 84,000, while the Nifty climbed more than 700 points (2.9 percent) to reach 25,800 in morning trade.

Market experts say the move has injected “instant confidence” after recent volatility around STT hikes and the Union Budget.

What led to the rally

According to the official announcement, the US revised duties from 50 percent to 18 percent, reducing pressure on Indian exporters and signalling a softer trade stance.

This is expected to:

lower costs for Indian goods entering the US

reduce friction in bilateral trade

improve export competitiveness

strengthen rupee sentiment over the coming sessions

Analysts say the tariff rollback comes at a crucial time when India is pushing for expanded access in global markets.

Sector-wise impact

Realty and IT stocks shine

Early buying was strongest in:

Real Estate (benefit from better liquidity and lower risk environment)

IT & Tech (major US exposure and improved trade outlook)

Export-led manufacturing

Auto & consumer goods

Midcaps and smallcaps also saw broad-based participation after the sharp selloff earlier in the week.