Market Opens Strongly Following Trade Deal
On February 10, 2026, Indian benchmark indices showed positive momentum in early trading hours, with the Nifty50 index opening above 25,900 and the BSE Sensex rising by over 150 points. By 9:16 AM, the Nifty50 was situated at 25,918.55, reflecting an increase of 51 points or 0.20%. Similarly, the BSE Sensex reached 84,232.68, up 167 points, also accounting for a 0.20% rise.
This market surge is attributed to the recent announcement of a trade deal between India and the United States, which has had a buoyant impact on investor sentiment. As foreign institutional investments increase, this upward trend signals growing confidence among market players.
Importance of the Trade Deal
The significance of the U.S.-India trade deal extends beyond immediate gains in the stock market. Experts believe that it presents a favorable environment for Indian businesses, paving the way for higher economic growth. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, emphasized that positive macroeconomic indicators are contributing to improved market conditions.
Dr. Vijayakumar noted, “The tailwinds for the market are getting stronger with each passing day. Growth prospects for the economy are improving beyond earlier optimistic projections.” He highlighted an uptick in private capital expenditure (capex), noting that a sample of listed companies reported a 13.1% year-over-year increase in fixed assets during the first half of FY26.
Positive Signals from the Broader Economy
Private Capex and Bank Credit Growth
The increase in fixed assets indicates a shift toward greater investment by the private sector, which has faced stagnation over previous years. This trend complements the recent rise in bank credit, suggesting that businesses are ready to take on new projects.
Experts predict that these developments could lead to GDP growth exceeding 7%. Furthermore, inflation is anticipated to stabilize around 4% by FY27, which may translate into nominal GDP growth nearing 10.5% and corporate earnings growth of above 16%
Sectoral Performance
Market analysts anticipate that financial stocks could outperform the broader market rally, fueled by the ongoing economic optimism. Meanwhile, the IT sector may continue to face challenges due to recent setbacks related to artificial intelligence. The resurgence of small-cap stocks is likely to entice retail investors, further stabilizing the market trends.
Global Market Influence
Reflecting similar sentiments, U.S. stock markets also experienced gains recently, with the S&P 500 and Nasdaq showing a robust recovery following a turbulent start to the trading week. Technology stocks, which faced instability due to concerns surrounding AI, have started to regain their footing as investors shift their focus to crucial upcoming economic data.
As investors await key employment and inflation data from the U.S. later this week, fluctuations in the global market could also have pronounced effects on Indian indices. The strength of the U.S. dollar, which has seen a recent uptrend, is influencing global commodities prices, including gold and silver, which experienced declines.
Investor Sentiment and Market Outlook
The future direction of the Indian stock market remains closely linked to global macroeconomic trends and investor sentiment. Analysts suggest that any positive insights from the U.S. economic data may bolster confidence among investors, potentially leading to further gains in Indian equities.
Dr. Vijayakumar further noted, “The market will start incorporating these positive developments, especially with the trade deal with the U.S. no longer acting as a limiting factor.” This sentiment underscores the importance of continuous monitoring of global economic conditions and their impact on domestic markets.
Conclusion
As the Indian stock market continues to show resilience, stakeholders remain hopeful for sustainable growth driven by improved economic fundamentals. The market’s ability to adapt to and capitalize on favorable global trends may further solidify its upward trajectory in the near future.
As retail investors engage with the market, the anticipated recovery of small-cap stocks may provide additional momentum. With careful observation of macroeconomic indicators and their implications for both domestic and international markets, investors are gearing up for a hopeful near-term outlook.