India-US Deal Sparks Market Rally: Sensex Eyes 2,250-Point Surge, Nifty 50 Poised to Break Records

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Indian equity benchmarks Sensex and Nifty 50 are set for a strong opening on Tuesday, fueled by a surge in GIFT Nifty following the announcement of a major trade deal between India and the United States. US President Donald Trump's deal with Prime Minister Narendra Modi has boosted global risk sentiment, with Asian markets rallying and US stocks closing higher overnight. According to stock market experts, the deal will likely lead to a strong start to Tuesday's session, with the Nifty 50 potentially breaking above the 25,500 mark in the near term. Analysts recommend keeping an eye on export-oriented sectors such as pharma, IT, auto, textiles, and gems and jewellery, which stand to benefit directly from lower tariffs. The India-US trade deal includes the waiver of 25% tariffs imposed on India for purchasing crude oil from Russia and a reduction in tariffs on Indian goods from 25% to 18%. The deal also signals improved trade relations between the two countries and reduced cost pressures for businesses. India will cut its tariffs and non-tariff barriers on US goods to zero, a major positive for Indian equities. GIFT Nifty is trading at a premium of nearly 797 points over the previous close, indicating a significant gap-up opening for domestic benchmark indices. Investors will be closely watching whether the Sensex and Nifty can scale fresh record highs during the session. Indian markets ended sharply higher on Monday, with the Sensex jumping 943.52 points and the Nifty 50 rising 262.95 points. However, some concerns remain, including mixed corporate earnings this season and the need for clarity on India's reported commitment to purchase $500 billion worth of goods from the US under the deal.