Markets witnessed a sharp rally on Tuesday, with the Sensex soaring 2,072.67 points or 2.54 per cent to close at 83,739.13, marking its biggest single-day gain in terms of points since November 22, 2024, when it had jumped 1,961.32 points, FPIs returned as big buyers on Tuesday, thanks to Indo-US trade deal.

The Nifty 50 surged 639.15 points or 2.55 per cent to settle at 25,727.55, driven by a landmark India-US trade agreement that significantly eased tariff concerns. The Nifty, in fact, opened higher at 26,308.05 and rose further to 26,341.20, almost near its all-time high of 26,373.20, before turning weak from the peak.

Ravi Singh, Chief Research Officer at Master Capital Services, said for a prolonged period, uncertainty over delay in trade negotiations and the risk of elevated tariffs acted as an overhang for Indian equities, particularly for export-oriented sectors. That overhang now appears largely tackled. Lower tariffs now improve the competitiveness of Indian exports and enhances visibility of earnings across sectors such as engineering goods, fisheries, textiles, chemicals and auto ancillaries, he said.

According to exchange provisional data, FPIs pumped in ₹5,426.24 crore worth shares on Tuesday after pulling out nearly ₹30,000 crore in 2026 so far.

The breakthrough came as the US agreed to reduce reciprocal tariffs on Indian imports from 25 per cent to 18 per cent and fully withdrew the additional 25 per cent punitive levy linked to Indo-Russian oil trade, implying a sharp 32 per cent reduction in the overall tariff burden. “The development has significantly improved sentiment, as expectations of stronger trade flows and potential FII inflows have boosted confidence in the domestic currency,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.

Broad participation

Market breadth turned decisively positive with 3,279 stocks advancing against 1,015 declines on the BSE, while 121 stocks touched 52-week highs and 117 hit 52-week lows. The Nifty Midcap 100 surged 1,639.50 points or 2.84 per cent to 59,307.10, while the Nifty Smallcap 100 jumped 465.60 points or 2.82 per cent to 16,988.95, reflecting strong broad-based participation.

The market capitalization of BSE-listed firms surged around ₹12.10 lakh crore to ₹467.03 crore..

Sectoral gains were led by realty stocks, which rallied nearly 4.8 per cent, followed by infrastructure, energy, pharma and banking. The Nifty Financial Services index gained 875.05 points or 3.27 per cent to 27,674.05, while the Nifty Bank rose 1,422.30 points or 2.43 per cent to 60,041.30 after touching a fresh all-time high of 61,764 during the session.

Top gainers

Among Nifty 50 constituents, Adani Enterprises emerged as the top gainer, surging 10.58 per cent to close at ₹2,206.50, followed by Adani Portswhich jumped 9.19 per cent to ₹1,532. Jio Financial Services climbed 8.15 per cent to ₹264, Bajaj Finance advanced 6.67 per cent to ₹964, and InterGlobe Aviation gained 5.57 per cent to ₹4,948. “Adani Group stocks attracted buying on hopes of gains from stronger energy trade ties and infrastructure opportunities linked to deeper bilateral relations,” noted Bajaj Broking in its market commentary.

Only four stocks in the Nifty 50 ended in the red, with Tech Mahindra leading losses with a marginal decline of 0.66 per cent to ₹1,712.70, followed by Bharat Electronics (-0.16 per cent to ₹438.40), SBI Life Insurance (-0.08 per cent to ₹1,999.40), and Nestle India (-0.07 per cent to ₹1,307.40).

The Indian rupees strengthened sharply, appreciating by ₹1.28 or nearly 1.40 per cent following the trade deal announcement. “At present, USDINR is quoting near 90.25. The immediate resistance for the rupee is seen around 89.90, while 90.50 now acts as an important base support,” Trivedi added.

Despite the strong opening, both indices witnessed sharp intraday volatility. “The Nifty opened over 1,200 points higher but saw sharp volatility in early trade. After correcting around 700 points from the high of 26,341.20, it found support near 25,641 and rebounded 223 points to close at 25,727, indicating buying at lower levels,” said Hitesh Tailor, Research Analyst at Choice Equity Broking. The India VIX declined 7 per cent to 12.89, signaling easing market anxiety.

“This materially improves the competitiveness of Indian exports in the US and is likely to lift market sentiment, with a multi-layered positive impact on the economy and export-facing sectors,” said Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services. “Key beneficiaries include Auto Ancillaries, Defence, Textiles, EMS, Consumer Durables, IT Services, and Utilities, while Financials could see second-order gains through improved growth visibility.”

In commodities, gold and silver showed early signs of stabilization after last week’s selloff. “Gold and silver are showing early signs of stabilization after last week’s historic selloff, with both metals rebounding modestly as investors reassess whether the downturn was structural or simply an overshoot,” said Hareesh V, Head of Commodity Research, Geojit Investments.

Looking ahead, market participants expect continued positive momentum in the near term. “With the deal-related uncertainty now being lifted, we believe that multiple positives will accrue in the form of reversal of FII outflows, INR recovering its lost ground and general improvement in sentiments towards Indian equities,” Khemka said. However, analysts cautioned that holding the 25,400-25,500 zone will be critical for the Nifty, with the upcoming RBI monetary policy announcement likely to keep volatility elevated.

Published on February 3, 2026

Fractal Analytics logo | Photo Credit: Dado Ruvic

Enterprise AI solutions unicorn Fractal Analytics reduced its Initial Public Offering (IPO) size by 42 per cent to ₹2,833.9 crore on February 2, according to the prospectus filed with SEBI.

Fractal detailed fresh issue size of ₹1,023.5 crore and an offer for sale of ₹1,810.4 crore. Quinag Bidco Ltd managed by Apax Partners will sell shares worth ₹880.9 crore while TPG Fett Holdings and GLM Family Trust will each sell shares worth ₹450 crore through the offer for sale.

The IPO offer opens on February 9 and closes on February 11. Anchor bidding will open on February 6.

Earlier it had filed for an IPO size of ₹4,900 crore.

According to Kranthi Bathini, Director, Equity Strategy, WealthMills Securities, the reduced size may indicate good market conditions as companies typically decrease equity dilution when market momentum is good which typically brings down IPO size. Bathini noted there is currently a lot of craze for AI in the ecosystem.

Meanwhile, businessline reached out to Fractal for a comment but the company refrained from commenting.

Fractal’s IPO in November had made quite a buzz as one of the largest public issues in India’s AI solutions space.The company is selected by the Indian government to build India’s first large reasoning model under the India AI Mission.

Published on February 3, 2026

Adani Enterprises Ltd reported an 8.6 per cent rise in consolidated net profit, weakness in the coal management business being offset by airports and new energy businesses.

Revenue came in at Rs 24,820 crore, while net profit got a substantial boost from exceptional gains of Rs 5632 crore due to sale of stake in Adani Wilmar. It reported net profit of Rs 5627 crore, compared to Rs 58 crore year ago.

EBITDA for the quarter grew 15 per cent to ₹4,297 crore, while nine-month EBITDA fell 3 per cent to ₹11,985 crore.

The airports business of the company saw a 28 per cent increase in income at Rs 3770 crore, with aero revenue rising by 22 per cent and non-aero revenues by 28 per cent. Aero revenue contributed to a third of total airport revenue, and over half from non-aero.

Non-aero revenues included duty-free, food and beverages, lease and retails, car park and passenger services. The airport vertical’s EBITDA rose 42 per cent to ₹1,568 crore in Q3.

The company announced that its greenfield Navi Mumbai International Airport commenced operations on December 25, 2025, with a Phase I capacity of 20 million passengers per annum.

The new energy business under Adani New Industries saw a 7 percent rise in revenue to Rs 3161 crore on higher volumes.

Revenues in the coal management business fell by a fourth due to low volume and prices, while mining services saw a 16 per cent rise start of operations for a new mine service contract.

Adani Enterprises raised ₹24,930 crore through a rights issue in December 2025, which was oversubscribed by 30 per cent. The company also raised ₹1,000 crore through its third public issue of non-convertible debentures in January 2026.

Published on February 3, 2026

Shares of Adani Group Companies rallied sharply on Tuesday, rising 2-11 per cent, tracking a broader market surge after news of an India-US trade deal agreement lifted investor sentiment across risk assets.

The surge added about ₹1.06 lakh crore to the conglomerate’s total market capitalization in a single session, with brokerage Jefferies noting that the Adani Group is likely to emerge as one of the key beneficiaries of the trade deal.

Adani Enterprises led the Nifty 50 pack to settle 10 per cent higher at 2,202.60, jumping as much as 12 per cent to ₹2,233.40 intraday from its previous close of ₹1,995.40. The company posted a standalone net profit for the quarter ended December 2025 at ₹6,295.99 crore compared to ₹534.59 crore year ago.

Adani Ports and Special Economic Zone closed 9 per cent positive at ₹1,530.80, hitting an intraday high of ₹1,537 against the previous close of ₹1,403.10. It recorded a gain of over ₹27,000 crore in market capitalization, supported by its strong Q3 FY26 results. It reported a consolidated PAT of ₹3,042.93 crore in Q3, up from ₹2,518.39 crore a year earlier.

Renewable and utility plays in the conglomerate also saw heavy action with Adani Green, Adani Power, and Adani Energy Solutions collectively adding more than ₹44,000 crore to the group’s market value.

Adani Green climbed 10 per cent to end at ₹931.10 and touched a high of ₹951.55, while Adani Energy Solutions also ended 10 per cent higher at ₹974.40.

Adani Total Gas advanced 7.5 per cent to ₹558 before closing 4 per cent positive at ₹542.35, and Adani Power 7 per cent to ₹143.62.

AWL Agri Business shares were up 1 per cent to ₹215.12. Its consolidated net profit for the quarter ended December 2025 declined 34.5 per cent yoy to ₹269.03 crore compared to ₹410.93 crore in the same quarter last year.

Cement stocks from the group joined the rally as well, with ACC rose 2 per cent to ₹1,668.90 and Ambuja Cements soared over 3 per cent to ₹528.25.

The sharp move across Adani counters came as optimism over easing trade tensions between India and the US boosted equities broadly, encouraging investors to rotate into infrastructure, energy and capital-intensive stocks that are seen as key beneficiaries of stronger cross-border economic activity.

Published on February 3, 2026

FPIs’ short exposure in index futures has remained near 80 per cent or higher since July 2025. Photo Credit: iStockphoto

A wave of short covering by foreign portfolio investors (FPIs) helped push the Nifty 50 nearly 3 per cent higher on Tuesday after a surprise India-US trade agreement cut tariffs on Indian exports. Dealers said the positive news forced overseas investors, who were carrying record bearish positions in derivatives, to rapidly unwind shorts, but a flow reversal is yet to take shape.

Foreign investors had entered Tuesday’s session holding record bearish positions in index futures and options. Data showed FPIs were carrying a net short exposure of 8,26,636 index options contracts at the end of Monday’s trade, while net short positions in index futures alone stood at 2,27,144 contracts. Short positions accounted for nearly 90.8 per cent of their total derivatives exposure.

When markets surged following the announcement of the US-India trade deal that lowered tariffs on Indian exports, many of these large short positions were forced to close, intensifying buying pressure and pushing benchmark indices sharply higher.

Feroze Azeez, Joint CEO of Anand Rathi Wealth Ltd, said the rally was primarily a technical reaction to positioning rather than a shift in sentiment. “Foreign investors had built very large short positions in index futures ahead of the Budget. When the market unexpectedly rallied because of the US-India trade deal announcement, many of these positions were quickly closed, leading to short covering and adding to the upward move.”

“While the price action indicates meaningful short covering rather than simple unwinding, long-term reversal still hinges on corporate earnings, macro environment and global stability,” he said.

Nifty50 surges

The Nifty 50 surged 639.15 points or 2.55 per cent to settle at 25,727.55, while the Sensex soared 2,072.67 points or 2.54 per cent to close at 83,739.13, marking its biggest single-day gain in terms of points since November 22, 2024. Despite a strong opening rally, markets cooled from the day’s highs, indicating that panic-driven short covering was limited, analysts said.

Anand James, Chief Market Strategist at Geojit Investments Ltd, said that FPIs’ short exposure in index futures has remained near 80 per cent or higher since July 2025. “A structural shift in FPIs’ positioning will need a few more days to get established. We have seen several instances of brief easing, only to return to heavily short levels soon after,” he said.

However, provisional data from the NSE showed FPIs were net buyers of ₹5,426 crore in the cash market on Tuesday, while domestic institutional investors bought ₹345 crore, indicating that some fresh buying accompanied the derivatives covering.

While the finalization of the long-drawn trade deal invites some foreign inflows into the Indian equity market, FPIs remain cautious and await recovery in corporate earnings.

Published on February 3, 2026

In India, the yellow precious metal gained 6 per cent in the futures market and silver contracts were up by 15 per cent. Photo Credit: iStockphoto

Gold and silver recovered their losses over the past couple of sessions on Tuesday as bargain hunting emerged in global and domestic markets. Silver, again, outshone gold, gaining over 11 per cent, while gold rose 5.5 per cent.

In China, the white precious metal topped $100/oz again. The platinum group of metals, too, recovered from the huge fall witnessed on Friday and Monday, rising by 6 per cent.

“The sharp correction—around 25 per cent in gold and 45 per cent in silver from recent highs—has attracted strong physical buying from investors who were waiting for meaningful price retracements to accumulate precious metals,” said Renisha Chainani, Head of Research at Augmont.

technical correction

“The violent drop (Friday and Monday) is more like a technical correction than a deterioration in core fundamentals, noting that longer‑term drivers—geopolitical tensions, central‑bank buying and macro uncertainty—remain intact,” said Hareesh V, Head of Commodity Research, Geojit Investments Limited.

In India, the yellow precious metal gained 6 per cent in the futures market and silver contracts were up by 15 per cent as investors saw a buying opportunity after the precious metals complex was mauled on Friday and Monday.

Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd, and President of India Bullion and Jewelers Association Ltd, said gold is likely to remain range-bound with a positive bias, while silver may see higher volatility but benefit from strong industrial demand, keeping medium- to long-term trends intact.

At 2015 hours IST, gold was up by over $260 or nearly 5.6 per cent at $4,921.75 an ounce. Gold April futures on COMEX gained over 6 per cent at $4,948.76 an ounce. In the Mumbai spot market, gold ended at ₹1,51529 per 10 gm after opening at ₹1,50,708. On MCX, the precious metal’s April futures ruled at ₹1,52.00, a gain of nearly ₹8,500.

Silver surged to $88.49 an ounce, up by over $9. On COMEX, silver March futures increased to $88.39 an ounce. In the Mumbai spot market, silver ended at ₹2,63,935 a kg after opening at ₹2,55,372. On MCX, silver March futures increased by over ₹38,700 a kg to ₹2,75,00.

Chinese premium for silver

On the Shanghai Futures Exchange, silver March futures ruled at 23,013 yuan a kg ($103.04 an ounce). The white precious metal is at a premium in China as it is in demand for a slew of industries, such as electric vehicles, electronics and data centres.

Platinum was up over 6 percent at $2,239.10 an ounce. Palladium gained nearly 6 per cent at $1,813.5 an ounce.

Hareesh said, “A dramatic unwind hit gold and silver markets over the past two days, erasing a chunk of their record‑breaking January gains. The plunge began after CME Group hiked margin requirements on both metals, forcing leveraged traders to liquidate positions and accelerating a wave of selling.”

The correction was amplified by extreme overbought conditions after gold and silver touched unprecedented highs just days earlier, with silver having surged more than 60 per cent in a month and gold over 20 per cent. Profit‑taking cascaded into panic selling as liquidity thinned and volatility spiked, he said.

dazzling run

Chainani, head of research at Augmont, said gold and silver rebounded as markets factored in the absence of key US economic data due to a partial government shutdown and renewed bargain hunting.

Gold prices may extend the ongoing rebound towards $5,000 (₹155,000), with strong support seen near $4,600 (₹139,000), she said

Silver is attempting to build a base and is expected to consolidate in the $72–$87 range (~₹225,000–₹270,000). A buy-on-dips and sell-on-rallies strategy is advisable within this range amid elevated volatility, Chainani said.

The precious metals complex has had a dazzling run up to a record high of $5,608 on geopolitical crises, US trade disputes with other nations, and investors switching over to precious metals, fearing slack economic growth. In addition, silver has been facing a physical deficit for over seven years in a row.

Published on February 3, 2026