3 Reasons Behind The Massive Market Rally, ₹20 Lakh Crore Wealth Added In 20 Minutes

Mumbai: On Tuesday, February 3, 2026, the Indian stock market witnessed a massive rally after the announcement of the India-US trade deal. Due to this deal, the total market capitalisation of companies listed on the BSE increased by nearly Rs 20 lakh crore within just 20 minutes of trading.

The market opened with a sharp jump, and investors saw a big rise in their wealth in a very short time.

Market cap jumps by Rs 20 lakh crore

On Monday, at market close, the total market capitalisation of BSE-listed companies stood at around Rs 455 lakh crore. On Tuesday morning, it jumped to nearly Rs 474 lakh crore in early trade. Although the number later changed with market movements, the sharp rise reflected strong investor confidence.

The main reason for this rally was the trade deal under which tariffs on Indian exports to the US were reduced from 50 per cent to 18 per cent.

Reason 1: India-US Trade Deal

The biggest reason for the market rally was the India-US trade agreement. US President Donald Trump announced that tariffs on Indian exports to the US will be cut from 50 per cent to 18 per cent. He shared this update on social media after a phone call with Prime Minister Narendra Modi.

This decision made Indian goods more competitive in the US market. Compared to India, many Asian countries still face higher tariffs. Bangladesh, Sri Lanka, Taiwan and Vietnam face 20 per cent tariffs, while Pakistan, Indonesia, Malaysia, Thailand and the Philippines face around 19 per cent.

Reason 2: Indian rupee strengthens

The Indian rupee also showed strong gains after the deal. In early trade, the rupee strengthened by more than 1 per cent and reached 90.40 against the US dollar.

At the same time, the yield on the 10-year government bond fell by 5 basis points to 6.72 per cent. A stronger rupee and lower bond yields increased confidence among investors.

Reason 3: Textile stocks hit upper circuit

Textile stocks saw the biggest impact of the trade deal. All major textile shares were locked in a 20 per cent upper circuit. Investors expect higher exports of garments and textiles to the US after the tariff cut.

Apart from textiles, shrimp-related stocks, auto stocks and other sectors also saw strong buying.

Nifty 50 opens at record high

The Nifty 50 opened with a massive gap-up of 1,200 points, which is the biggest single-day opening move in its history in terms of points.

The midcap index crossed the 60,000 mark, while the Nifty Bank opened above 61,400 points. The broad-based buying showed strong faith in the India-US trade deal.

Disclaimer: This news is based on market data and public information available at the time of publication. It does not constitute investment advice. Stock market investments are subject to risks and market conditions.