GIFT Nifty surged nearly 400 points from an intraday low on Friday, after the US Supreme Court outlawed US President Donald Trump’s global tariffs—a move that gives New Delhi a bargaining chip in negotiating the India-US trade deal.
The narrative of India’s stock market over the last year has been a volatile tug-of-war between protectionist “tariff shocks” and the relief of a long-awaited trade deal. While the market was severely battered throughout 2025, the recent breakthrough on February 2, 2026, has sparked a massive recovery.
During the height of the trade tensions in late 2025, the Sensex and Nifty corrected by nearly 3% in a single month, with FIIs (Foreign Institutional Investors) pulling out over $22 billion in 2025 alone. The rupee plunged to record lows multiple times over.
Analysts estimated that Indian equities underperformed their emerging market peers by nearly 40% during this period due to the lack of trade clarity.