The GIFT Nifty rose nearly 400 points from intraday lows on Friday, after the US Supreme Court declared US President Donald Trump’s global tariffs illegal – a move that gives New Delhi a bargaining chip in negotiating the India-US trade deal.
The story of India’s stock market over the past 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 badly hit throughout 2025, the recent breakout on February 2, 2026 has brought about a massive recovery.
During the peak of trade tensions in late 2025, the Sensex and Nifty declined by about 3% in a single month, while FIIs (foreign institutional investors) pulled out more than $22 billion in 2025 alone. The rupee fell to record lows several times.
Analysts estimate that Indian equities underperformed its emerging market peers by about 40% during this period due to lack of trade clarity.
