The barometer index, the S&P BSE Sensex zoomed 2,072.67 points or 2.54% to 83,739.13. The Nifty 50 index added 639.15 points or 2.55% to 25,727.55. In two consecutive trading sessions, the Sensex added 3.74% while the Nifty gained 3.63%.

In the broader market, the BSE 150 MidCap Index rallied 2.79% and the BSE 250 SmallCap Index jumped 2.91%. The market breadth was strong.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tanked 6.99% to 12.90.

Among the sectoral indices, the Nifty Realty index (up 4.79%), the Nifty Pharma index (up 3.02%) and the Nifty Consumer Durables index (up 3.05%) outperformed the Nifty 50 index.

Meanwhile, the Nifty Private Bank index (up 2.50%), the Nifty Oil & Gas index (up 1.91%) and the Nifty Media index (up 1.49%) underperformed the Nifty 50 index.

India-US Trade Deal:

India and the United States on Monday announced a landmark trade deal following a phone call between Prime Minister Narendra Modi and U.S. President Donald Trump, marking a clear thaw in bilateral ties after months of tariff-related tensions.

Under the agreement, Washington will cut tariffs on Indian goods to 18% from 25% and scrap the additional 25% penalty imposed earlier over India’s purchases of Russian crude oil. Trump said New Delhi had agreed to stop buying Russian oil and would move to reduce tariffs and non-tariff barriers on U.S. goods to zero.

The deal is seen as a major boost to trade relations between the two countries, which are targeting bilateral trade of $500 billion by 2030. Market participants expect the agreement to lift sentiment for Indian equities and the rupee, while export-oriented sectors such as textiles, apparel and seafood are likely to be key beneficiaries.

Modi welcomed the announcement, saying reduced tariffs on Made in India products would unlock immense opportunities for mutually beneficial cooperation between the world’s two largest democracies. Commerce and Industry Minister Piyush Goyal called the pact a historic turning point, saying it would open new opportunities for farmers, MSMEs, entrepreneurs and skilled workers, while accelerating India’s progress towards Viksit Bharat 2047.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.69% to 6.722 compared with previous session close of 6.769.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 90.2500 compared with its close of 91.4950 during the previous trading session.

MCX Gold futures for 2 April 2026 settlement jumped 5.73% to Rs 152,235.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.03% to 97.58.

The United States 10-year bond yield added 0.21% to 4.287.

In the commodities market, Brent crude for April 2026 settlement fell 19 cents or 0.29% to $66.11 a barrel.

Global Markets:

European stocks advanced on Tuesday as global markets settled following a short-lived sell-off in cryptocurrencies and precious metals.

Asian markets ended higher after the U.S. and India trade deal, sparking a sharp risk-on move across the region.

Japan's Nikkei 225 jumped nearly 4%, and the Topix rose over 3.3%. South Korea’s Kospi surged about 6.84%, triggering a buy-side trading curb.

U.S. stocks climbed overnight as Wall Street kicked off the new month on a positive note, with investors looking past recent volatility in silver and bitcoin and turning their focus to the upcoming earnings slate. The Dow Jones Industrial Average rose 1.05%, the S&P 500 gained 0.54%, and the Nasdaq Composite added 0.56%.

Markets are also tracking key economic signals and cues from the Federal Reserve on interest rates, even as efforts continue in Washington to avert a partial government shutdown. Data releases have been disrupted, with the U.S. Bureau of Labor Statistics postponing the January jobs report and other labour data until federal operations resume.