Pulse of the Street: Trade buzz lifts D-Street, but pact details awaited

Subscribe to enjoy similar stories. MUMBAI: Indian equities logged their strongest weekly performance in 38 weeks and emerged as the world’s top-performing major market after the announcement of a US–India trade deal, even as its finer details remain unclear. Headline-driven optimism lifted the Nifty 50 and the Sensex 3.5% over a week that also included a special Sunday trading session for the Union budget.

The Nifty 50 currently trades at 25,693.70, while the Sensex stands at 83,580.40. According to a Mint analysis, this marks the benchmarks’ best weekly showing since the week ended 16 May 2025, when the Nifty 50 had gained 4.2% and the Sensex rose 3.6%. The rally, however, came with sharp turbulence.

The frontline indices recorded both their steepest single-day fall and biggest single-day jump in nine months within the same week, as investors digested twin triggers – the Union budget and the long-awaited US–India trade pact. Volatility spiked on Budget day, 1 February, when both benchmarks fell nearly 2%. Investors judged the government’s proposals as lacking sufficient firepower to revive growth, while a surprise hike in securities transaction tax (STT) on derivatives trading further dampened sentiment.

Experts flagged concerns that higher STT on futures and options could deter foreign investors at a time when they are already exiting Indian markets. Foreign portfolio investors (FPIs) sold nearly ₹36,000 crore worth of equities in January before turning net buyers this week. FPIs injected ₹9,442 crore in the first week of February after US President Donald Trump announced a breakthrough in trade negotiations with India, easing a key uncertainty overhang.