Sensex & Nifty Surge: Bank Nifty Jumps 500+ Points on India-US Trade Boost

February 9, 2026 — The Indian equity benchmarks, BSE Sensex and NSE Nifty 50, opened the week on a remarkably bullish note, buoyed by significant breakthroughs in international trade and robust corporate earnings. Investor sentiment was electrified by the formalization of the India-US Interim Trade Agreement (ITA), which promises a new era of tariff reductions and export visibility.

By mid-morning trade, the Nifty Bank index emerged as the star performer, surging over 500 points to trade comfortably above the 60,600 mark.

Key Market Indicators at 10:30 AM

Index	Current Value	Change (Points)	Change (%)
BSE Sensex	84,177.51	+597.11	0.71%
Nifty 50	25,888.70	+195.00	0.76%
Nifty Bank	60,621.55	+501.00	0.83%

Banking Sector Leads the Charge

The banking sector witnessed intense buying pressure, primarily driven by the State Bank of India (SBI). Shares of the country’s largest public sector lender jumped nearly 6% to reach an intraday high of ₹1,137. This rally follows SBI’s blockbuster Q3 FY26 results, where it reported an all-time high standalone profit of ₹21,028 crore.

Other major gainers in the banking space included:

• IndusInd Bank: Up 2.51%
• Kotak Mahindra Bank: Up 1.86%
• Bank of Baroda: Up 1.61%
• Canara Bank: Up 1.50%

While private lenders like HDFC Bank saw some mild consolidation, the overall sentiment in the financial space remained overwhelmingly positive, supported by the RBI’s recent decision to maintain a constructive growth outlook.

Catalysts for Today’s Rally

1. The India-US Trade Framework

The biggest tailwind for Dalal Street today is the clarity surrounding the India-US trade deal. Over the weekend, both nations outlined a framework that removes several punitive tariffs. Under the interim pact, the US has legally withdrawn the additional 25% ad valorem duty, replacing it with a more competitive 18% reciprocal tariff on select goods. This move is expected to significantly boost sectors like textiles, gems and jewellery, and chemicals.

2. Global Cues & Asian Outperformance

The domestic rally mirrored a “risk-on” phase across global markets. Japan’s Nikkei 225 led the Asian charge with a staggering 4.4% gain following a decisive political victory for Prime Minister Sanae Takaichi. US markets also provided a strong cushion, with the Dow Jones and S&P 500 closing higher on Friday.

3. Sectoral Rotation

Beyond banks, Metal and Jewellery stocks were in the spotlight. Kalyan Jewellers hit a 10% upper circuit following exceptional quarterly earnings and the news that the US has reduced tariffs on Indian jewellery exports to zero under the new trade framework.

Stocks to Watch

• Kalyan Jewellers: Surged 10.62% to hit a new high.
• Titan Company: Gained over 1% as lower import duties from the India-EU FTA begin to reflect in market expectations.
• PFC & REC: Both stocks traded lower (down 2-4%) as investors reacted to the board’s in-principle approval for a merger between the two power-financing giants.

Technical Outlook

Market analysts suggest that the Nifty is currently testing a crucial resistance at 26,000. On the downside, 25,500 remains a strong support level for the current weekly expiry. The India VIX (Volatility Index) slipped nearly 2%, suggesting that the “fear factor” is subsiding as trade policy clarity emerges.