Stock Market Today: The Indian stock market logged its best single-day rally in nine months after India signed a historic trade deal with the US on Feb. 2.
D-Street is tracking the trade deal between India and the United States that lowers reciprocal tariffs on Indian imports to 18% from 25%. The change takes effect immediately. India had earlier faced total tariffs of 50%, including a 25% penalty linked to buying Russian oil. The US Embassy confirmed the overall tariff rate is now 18%.
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. The Indian stock market joined the euphoria around better trade flows between the two large economies. Rupee appreciated against the dollar and government bond yields fell.
