Mumbai (Maharashtra) [India], February 3 (ANI): The Indian Stock indices settled 2.5 per cent higher on Tuesday, riding on the India-US trade deal under which Washington has agreed to bring down the reciprocal tariff on Indian goods to 18 per cent.

At the time of closing, Sensex was at 83,739.75, up by 2072 points or 2.5 per cent, while Nifty was at 25,727, up by 639 points or 2.5 per cent.

In terms of sectors, all the major indices traded in the green.

The rupee saw strong appreciation today, rising to a three-week high of Rs 90.25 against the US dollar.

The markets opened on a strong positive note, exploding in positive territory amid improved global risk sentiment after the trade deal announcement.

Reacting on the market's response to the US trade deal, Vinod Nair, Head of Research, Geojit Investments Limited, said, 'Indian equities experienced a significant rally today, driven by the long-anticipated India-US trade deal and a strengthening rupee, which boosted expectations of renewed FII inflows. The reduction of US tariffs on Indian goods from 50% to 18% enhances India's competitive position among emerging markets and bolsters the outlook for export-oriented sectors with high US exposure, such as textiles, aquaculture, gems and pharmaceuticals, which were supported in the 2026 Union Budget.'

'Overall market sentiment has turned decisively positive, with global trade risks easing and moderation in the US-Iran conflict. Going forward the markets could focus more on the ongoing Q3 corporate results with a positive bias, which till date have been below estimates, because of potential future earnings upgrades led by reduction in tariff risk,' Nair added.

On Rupee performance, Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities said, 'Rupee traded sharply stronger, appreciating by Rs 1.28 or nearly 1.40% following the US-India trade deal announcement. The agreement has significantly improved sentiment, as expectations of stronger trade flows and potential FII inflows have boosted confidence in the domestic currency.'

'At present, USDINR is quoting near 90.25. The immediate resistance for the rupee is seen around 89.90, while 90.50 now acts as an important base support. As long as the rupee sustains above the 90.50 zone, overall bias remains positive, with appreciation likely to continue if global risk sentiment remains stable and capital inflows strengthen,' he added. (ANI)