Mumbai, Feb. 3 -- Indian stock markets broke into a cheer on Tuesday following news that the long-pending India-US trade deal has been finally sealed. The Nifty 50 soared 5% at open, and the volatility gauge or fear gauge India VIX slumped 8%.

The conclusion of the deal has rekindled hopes that foreign institutional investors (FIIs), net sellers for most of 2025, could finally return.

Both benchmark indices were up 2.8%, with the Nifty 50 at 25,790 and the Sensex at 83,934. Nifty IT and Nifty Auto were the best-performing sectors, up over 5% each.

Negotiations around the deal have been anything but smooth. While the fine print still matters, its conclusion lifts a lingering cloud over the rupee, equities, and bond markets, bringing a d...