Battered by the budget 48 hours ago, the markets swung violently the other way Tuesday morning after US President Donald Trump announced the long-pending India-US trade deal had been agreed.

The Sensex opened over 3,600 points in the green to cross 85,000 after having closed Monday at 81,666.46, and the similarly bruised Nifty50 gained 1,200 points from its Monday close of 25,088.40.

At opening all sectoral indices showed huge gains with realty, auto, consumer durables, and IT among the big movers, up 4.47 per cent, 3.78 per cent, 3.69 per cent, and 3.04 per cent, respectively.

By 10am both pared (very) early gains; the Sensex was over 2,200 points up and the Nifty 650.

Meanwhile, the rupee strengthened 1.2 per cent to 90.40 against the US dollar in early trade. 

India’s stock markets have seen massive volatility over the past week, starting with the benchmark indices erasing overnight losses after a Free Trade Agreement with the European Union.

Prime Minister Narendra Modi and European Commission President Ursula von der Leyen both called it “the mother of all trade deals”. In a statement on X the PM said two of the world’s biggest democratic trading blocs – with trade valued at US$ 213 billion – had “sealed the biggest FTA in our history”.