Domestic markets are likely to open on a flattish note on Wednesday despite weak global cues. Gift Nifty at 25,806 indicates a flattish opening. According to market experts, sentiment has turned from “sell on rally” to “buy on dips”, post the US-India deal. According to them, consolidation phase is likely to continue.
Ponmudi R, CEO of Enrich Money, said: Indian equity markets continue to draw support from positive progress in India–US trade discussions, which remains the key sentiment driver. Improved visibility on external trade risks has revived confidence and renewed interest in export-oriented sectors. “After the strong multi-day rally, some profit-booking and range-bound action cannot be ruled out. That said, easing global uncertainties, sustained domestic capex momentum, and a stable macro backdrop keep the near to medium-term outlook constructive. Early signs of renewed FII participation following trade-related optimism are further adding to the positive undertone. Market direction today will largely depend on whether fresh follow-through buying emerges or indices pause to consolidate at higher levels,” he said.
Nachiketa Sawrikar, Fund Manager, Artha Bharat Global Multiplier Fund, said: The India–US relationship, which many expected to strengthen during President Trump’s second term, reached a new low in June. For the world at large, strained ties between the two largest democracies was hardly good news. “Against this backdrop, the new India-US trade deal, lowering the average tariff rate to about 18% from the earlier punitive 50%, marks a meaningful reset in bilateral economic relations.
For India, lower tariffs improve access to the US market for labour-intensive exports such as textiles, engineering goods, and pharmaceuticals, supporting jobs and manufacturing scale. The 18% rate brings India broadly in line with its ASEAN peers and represents the best outcome realistically achievable. For the US, the agreement creates opportunities to expand exports of energy, agricultural products, and advanced technologies, while strengthening supply-chain diversification away from over-concentrated geographies,” he said.
Rajeev Sharan, Head – Criteria, Model Development & Research, said: India’s trade agreement with the US materially reduces external uncertainty and reinforces a favourable growth outlook by boosting exports alongside rising domestic capex. “The deal should ease FPI equity selling as sectoral earnings visibility improves. By anchoring the rupee, it modestly pressures gold and silver prices in local terms, even as global safe haven demand persists,” he added.
According to Sawrikar, beyond tariffs, the deal signals renewed strategic trust. “With the rupee having weakened nearly 5% over the past six months, improved trade flows and renewed foreign investor interest could support a partial currency recovery. As relative attractiveness shifts back toward India from ASEAN markets, a reversal of recent FII outflows could further strengthen Indian equity markets,” he added.
Meanwhile, the majority of equities across the Asia-Pacific region are down in early deals on Wednesday.
Published on February 4, 2026