Indian Symbols Rally After Trump Cuts Tariffs: BSE Sensex Surges 2.7%

Indian equities kicked off trading with impressive momentum on Tuesday, riding the wave of a major trade agreement between the US and India. President Donald Trump unveiled a significant reduction in reciprocal tariffs imposed on Indian goods, slashing the rate from 25 percent to 18 percent. According to White House officials, Russian oil-linked tariffs will be eliminated entirely as part of this comprehensive trade framework, with additional tariff reductions bringing the overall rate to the 18 percent level.

Landmark US-India Trade Agreement Reduces Tariff Rates

The tariff reduction marks a pivotal moment in US-India trade relations. The White House confirmed that beyond the removal of Russia-linked trade barriers, other tariffs were systematically lowered to achieve the new 18 percent benchmark. This represents a substantial shift in trade policy between the two nations, addressing longstanding concerns about protectionist measures that had previously hindered bilateral commerce.

Market Response: Major Index Gains and Stock Rallies

Indian symbols demonstrated exceptional strength in market performance following the announcement. The benchmark BSE Sensex index climbed 2,240 points, reflecting a gain of 2.7 percent to reach 83,907 in early trading. The broader NSE Nifty index similarly jumped 690 points, or 2.8 percent, reaching 25,778. This dual surge across India’s primary indices underscored investor confidence in the trade deal’s economic implications.

Among individual stocks, major Indian symbols showed remarkable gains. Leading gainers included Mahindra & Mahindra, Reliance Industries, Larsen & Toubro, Axis Bank, Sun Pharma, Bajaj FinServ, Eternal, Bajaj Finance, Indigo, and Adani Ports, each advancing between 4 and 8 percent during early trading sessions.

Government Officials Hail Trade Deal for Economic Confidence

India’s leadership expressed strong optimism about the trade agreement’s prospects. Prime Minister Modi declared on social media platform X: “Self-confidence is that power with the help of which everything is possible. This very power of the countrymen will prove extremely useful in realizing the dream of a developed India.” His statement reflected the broader sentiment that the trade accord would accelerate India’s development trajectory.

Union Minister Nitin Gadkari reinforced this optimistic outlook, noting that the agreement will deepen mutual trust between the two nations. He emphasized that the deal will meaningfully enhance business sentiment, encourage trade expansion, and attract heightened investment flows into the Indian economy.

The robust market reaction and positive government commentary suggest that the tariff reduction will have substantial ramifications for Indian symbols and the broader economy in the coming months.