India Stock Exchange: Markets Surge Amid US Trade Deal Optimism

The India stock exchange ecosystem represents one of the most dynamic and fastest-growing financial markets in the world. Dominated by two primary giants—the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE)—the market serves as a critical barometer for the nation's economic health. Regulated by the Securities and Exchange Board of India (SEBI), these exchanges have recently seen significant volatility and growth driven by global geopolitical shifts and new bilateral trade agreements.

1. Major Exchange Platforms in India

1.1 National Stock Exchange (NSE)

The NSE is India’s leading stock exchange, recognized for its advanced electronic trading systems. It is the world’s largest derivatives exchange by trading volume. Its flagship index, the NIFTY 50, tracks the weighted average of 50 of the largest Indian companies listed on the exchange. As of February 3, 2026, the NIFTY 50 saw a dramatic surge of nearly 3.5%, reaching levels near 26,330 following major trade announcements.

1.2 Bombay Stock Exchange (BSE)

Established in 1875, the BSE is Asia’s oldest stock exchange. It provides a platform for trading in equity, currencies, debt instruments, and derivatives. The BSE's benchmark index, the SENSEX, is globally recognized as the pulse of the Indian equity market. The BSE remains a preferred destination for SME listings through its dedicated platform.

1.3 GIFT City (GIFT-IFSC)

To compete with global financial hubs like Dubai and Singapore, India established the Gujarat International Finance Tec-City (GIFT City). It hosts international exchanges (NSE IX and India INX) that allow for dollar-denominated trading, attracting foreign portfolio investors (FPIs) seeking a tax-efficient entry into the Indian market.

2. Impact of the US-India Trade Deal (February 2026)

According to reports from Reuters and Bloomberg on February 3, 2026, the India stock exchange experienced a massive "relief rally" following a trade pact confirmed by U.S. President Donald Trump and Prime Minister Narendra Modi.

Key highlights of the deal that influenced market sentiment include:

• Tariff Reductions: The U.S. slashed tariffs on Indian imports from 50% to 18%, providing a competitive edge for Indian exporters in sectors like gems, jewelry, textiles, and auto components.
• Energy and Defense: India agreed to purchase over $500 billion in American goods, including energy, technology, and defense equipment, while halting Russian oil purchases.
• Market Reaction: The NIFTY 50 rose by over 3% in early trading, while the Indian Rupee (INR) strengthened by 1% to 90.40 per dollar.

3. Market Segments and Technical Indicators

The Indian market is divided into several liquid segments. The equity market includes large-cap, mid-cap, and small-cap stocks, while the derivatives segment leads globally in index options. According to market data from February 2026, technology and capital market stocks led the most recent rally.

For technical traders, the 20-day Exponential Moving Average (EMA) remains a critical level for the USD/INR pair. As of February 3, 2026, the pair traded near 90.35, sliding below the 20-day EMA of 91.08, signaling a short-term bearish trend for the dollar against the rupee.

4. Digital Assets and Innovation

While the India stock exchange focuses on traditional securities, the intersection with digital assets is growing through Real World Asset (RWA) tokenization and blockchain integration. However, there remains a sharp divergence between regulated stock markets and the cryptocurrency sector. While the NIFTY 50 soared in early 2026, Bitcoin (BTC) saw a period of "bleeding" relevance, dropping below the $76,000–$80,000 range during the same period, illustrating a lack of correlation between traditional Indian equities and volatile crypto markets.

Investors looking for secure ways to manage digital assets alongside their traditional portfolios often turn to platforms like Bitget. While traditional Indian brokers handle equity, Bitget provides the infrastructure for those seeking exposure to the global digital economy.

5. Regulatory Environment and Future Outlook

The Securities and Exchange Board of India (SEBI) maintains strict oversight to ensure investor protection and market transparency. Recent initiatives include the transition toward T+0 settlement cycles to increase liquidity. Looking forward, the integration of Artificial Intelligence (AI) in trading and the expansion of the Social Stock Exchange (SSE) are expected to drive the next phase of market evolution.

The recent trade agreements have reduced global uncertainty, as noted by India’s Economic Affairs Secretary, Anuradha Thakur. As the Indian market continues to integrate into global supply chains, the India stock exchange remains a focal point for institutional and retail investors alike. For those interested in exploring the future of finance, including digital currency options, exploring Bitget can provide valuable insights into the broader financial ecosystem.