Sensex Today: Stock Market LIVE Updates – Feb 4, 2026 | India-US Trade Deal Boosts Markets

Indian stock markets experienced volatility on Wednesday, February 4, 2026, following a significant rally spurred by the finalisation of a new India-US trade deal. The agreement, which lowered tariffs on Indian goods from 50 per cent to 18 per cent, initially boosted investor confidence and removed a key market uncertainty.

Trade Deal Impact and Market Response

The finalised trade deal appears to have had an immediate positive effect, contributing to the previous day’s rally. However, Wednesday’s trading session demonstrated a more cautious approach, with gains tempered by weakness in specific sectors. As of 3:00 PM, the Nifty was up 84.85 points, or 0.27 per cent, closing at 25,794.70, while the Sensex rose 154.01 points, or 0.18 per cent, to 83,893.14.

Did You Know? The India-US trade deal reduced tariffs on Indian goods by 32 percentage points, from 50 per cent to 18 per cent.

Sector Performance

While the broader market showed modest gains, performance varied significantly across sectors. The Nifty IT index experienced a substantial drop of 6 per cent, pulled down by companies including Persistent Systems, LTIMindtree, Infosys, HCL Tech, Coforge, TCS, Mphasis, and Tech M. Conversely, the Nifty Consumer Durable and Nifty Oil and Gas indices led gains, rising by 2.05 per cent and 1.90 per cent, respectively.

Within the Sensex, Infisys, HCL Tech, TCS, Tech M, Bajaj Finance, Bajaj Finserv, and Eternal were among the top losing stocks. M&M, Tata Steel, Power Grid, ITC, NTPC, RIL, ICICI Bank, Maruti Suzuki, and Bharti Airtel were the leading gainers.

The Nifty MidCap index saw a slight increase of 0.04 per cent, and the Nifty SmallCap index rose by 0.58 per cent. The Nifty Realty index was the only other index trading in the red, falling by 0.8 per cent.

Expert Insight: The contrasting performance across sectors suggests investors are reassessing portfolio allocations in light of the new trade dynamics. The IT sector’s decline, despite the broader positive sentiment from the trade deal, indicates sector-specific concerns may be outweighing the overall benefits.

Looking Ahead

The market’s future trajectory could depend on sustained investor confidence following the trade deal. Further gains may be limited if the weakness in the IT sector persists. A possible next step for investors could be to monitor sector-specific developments and adjust their strategies accordingly. Analysts expect continued volatility as the market digests the implications of the new trade agreement.

Frequently Asked Questions

What impact did the India-US trade deal have on the market?

The finalisation of the India-US trade deal lowered tariffs on Indian goods from 50 per cent to 18 per cent, improving investor sentiment and contributing to a previous day’s rally.

Which sector experienced the most significant decline on Wednesday?

The Nifty IT index dropped 6 per cent, dragged down by companies including Persistent Systems, LTIMindtree, Infosys, HCL Tech, Coforge, TCS, Mphasis, and Tech M.

Which sectors showed the strongest gains?

The Nifty Consumer Durable and Nifty Oil and Gas indices led gains, rising by 2.05 per cent and 1.90 per cent, respectively.

How will the market react to the new trade deal in the long term?