Minutes after US President Donald Trump announced that India and United States have agreed to a trade deal, GIFT Nifty futures rose 3.8%.
Minutes after US President Donald Trump announced that India and United States have agreed to a trade deal, GIFT Nifty Futures rose 3.8%. The futures contract based on the benchmark Nifty 50 as of 11:21 p.m. was trading 821 points higher at 25,950.
In addition, US-listed iShares MSCI India ETF hit session highs and was up as much as 2.4%. The rupee also rallied in the offshore trading as it rose 1% against the dollar.
Not just the GIFT Nifty even the New York-listed shares of leading Indian information technology giants Infosys Ltd. and Wipro Ltd. and even banks like HDFC Bank and ICICI Bank were trading higher. While Wipro ADR rose 7%, Infosys ADR and HDFC ADR was up over 3%. ICICI Bank ADR on the other hand was trading 4%.
India and the US have “agreed to a trade deal”, which will reduce the reciprocal tariffs on Indian imports to 18% from 25%, President Donald Trump said, following a phone call with Prime Minister Narendra Modi. The trade deal will be “effective immediately”, Trump said, signalling immediate tariff relief for India.
ALSO READ: India, US ‘Agreed’ To Trade Deal; Reciprocal Tariffs Slashed To 18%: Trump After Modi Phone Call
“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a trade deal between the United States and India, whereby the United States will charge a reduced reciprocal tariff, lowering it from 25% to 18%. They will likewise move forward to reduce their tariffs and non-tariff barriers against the United States, to zero,” he said.
Trump’s statement came shortly after a phone call with Modi.
Notably, the two sides have been locked in negotiations since early 2025, but the talks derailed after the US slapped tariffs as high as 50% on Indian imports in August. After a brief pause, the negotiations resumed in October, but the two countries could not reach the finish line.
Representatives of New Delhi and Washington are engaging in “robust negotiations”, and remain in regular touch as the discussions continue, the persons privy to the development added.
The Modi-Trump phone call also comes days after US Treasury Secretary Scott Bessent signalled that half of the tariffs imposed on India—25% levies—could be waived as India has significantly trimmed its import of Russian crude oil.
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