Rs 13 lakh crore boom! Sensex surges 3,500 pts, Nifty soars nearly 5%. India-US trade deal among top factors behind rally

Group 1: Market Overview - The Indian stock market experienced a significant rally, adding approximately Rs 13 lakh crore in investor wealth within 15 minutes of early trade, with the total market capitalization of BSE-listed companies reaching Rs 468.32 lakh crore [1][8] - The benchmark BSE Sensex rose nearly 3,500 points, or 4.4%, to 85,323, while the Nifty 50 climbed 1,200 points, or 4.7%, to 26,308, marking one of the largest single-day gains following the India-US trade deal [8] Group 2: Trade Deal Impact - A trade deal between India and the US was signed, reducing US tariffs on Indian goods to 18% from 50%, while India will eliminate tariffs and non-tariff barriers on American goods, alleviating concerns that had previously hindered foreign investment [1][8] - The trade deal is expected to enhance market sentiment and economic activity, supported by additional trade agreements and a growth-oriented budget [3][8] Group 3: Currency and Economic Factors - The Indian rupee strengthened, opening at 90.40, contributing to a stabilizing effect on domestic assets and reducing the impact of global market volatility [3][8] - Experts predict that the combination of the US-India trade deal, the EU-India trade deal, and a growth-oriented budget will boost market sentiments and economic confidence [3] Group 4: FII Activity - Foreign Institutional Investors (FIIs) engaged in short covering, which was a significant factor in the market rebound, with estimates suggesting that short positions were near 90% [4][8] - The Nifty index rebounded from oversold conditions, reclaiming the 26,000 level, indicating a potential shift in market dynamics [4][8] Group 5: Sector Performance - Heavyweight stocks led the market rally, with notable performances from Mukesh Ambani's Reliance Industries, which rose nearly 4%, and Adani Ports, which surged 8% [6][8] - Other major companies such as HDFC Bank, L&T, Bajaj Finance, ICICI Bank, and Infosys also contributed positively, with increases of up to 5% [8] Group 6: Global Market Influence - Positive global cues were observed, with the Dow Jones increasing by about 515 points (1.05%), the S&P 500 advancing by 0.5%, and the Nasdaq Composite gaining nearly 0.6% [6][8] - Asian markets responded favorably to the trade deal, with Japan's Nikkei 225 rising by as much as 3% and South Korea's Kospi soaring over 5% [6][8]