India's Nifty 50 skyrockets 5% as U.S.-India trade deal turbocharges stocks

Trade Deal Impact - India's benchmark Nifty 50 stock index rose 5% following the announcement of a trade deal between New Delhi and Washington, which includes a significant reduction in U.S. tariffs on Indian exports [1] - U.S. President Donald Trump announced a reduction of reciprocal tariffs on India from 25% to 18%, while India will eliminate its tariff and non-tariff barriers against U.S. products [1][2] Tariff Changes - The U.S. previously imposed tariffs of up to 50% on India, including a 25% levy on Russian oil purchases, which has now been reduced to 18% [2] - India has agreed to cease purchasing Russian oil and increase imports from the U.S. as part of the trade agreement [2] Economic Outlook - Modi stated that "made in India" products will now face reduced tariffs of 18% in the U.S., supporting the U.S. president's efforts for global peace and prosperity [3] - The lack of an explicit trade deal had previously created a disconnect between India's strong macroeconomic indicators and the underperformance of various asset classes, according to Citi Research [3] - The tariff reduction is viewed as significantly better than market expectations and, when combined with the recent India-EU trade agreement, could provide substantial external growth stimulus for the Indian economy in 2026 [4]