With tariffs on Indian goods now lower than or broadly in line with competitors such as Pakistan and Vietnam in labour-intensive segments, Jefferies said the deal improves India’s positioning and reduces the risk of further FPI outflows.
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Moneycontrol03-02-2026, 20:43

India-US Trade Deal Fuels Rs 5,236 Crore FII Inflow, Boosts Market Sentiment

  • Foreign Institutional Investors (FIIs) net bought Indian equities worth Rs 5,236 crore on February 3, marking the highest single-day inflow in 2026 and a three-month high, following the India-US trade deal announcement.
  • Domestic Institutional Investors (DIIs) also showed strong buying interest, net purchasing shares worth Rs 1,014 crore on the same day.
  • The benchmark BSE Sensex surged 2.54% to 83,739.13, and the NSE Nifty 50 index advanced 2.55% to 25,727.55, as the trade deal removed market uncertainty.
  • Most NSE sectoral indices, including realty, infrastructure, energy, pharma, and banking, saw significant gains, with realty leading at nearly 4.8%.
  • Experts anticipate continued positive momentum in Indian markets, driven by the trade deal, Union Budget, and Q3 earnings, potentially leading to FII inflow reversal and INR recovery.

Why It Matters: The India-US trade deal sparked significant FII inflows and a broad market rally, signaling renewed investor confidence.

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