SGX Nifty February 2026 futures increased by 298.50 points, indicating a robust beginning for the Nifty 50 today.
India and the U.S. reached a significant trade agreement on Monday, with Washington reducing tariffs on Indian goods to 18% from 25% and eliminating the extra 25% penalty associated with India’s purchases of Russian oil. Trump stated that India would eliminate tariffs and non-tariff barriers on U.S. goods entirely and cease purchasing Russian crude, indicating a warming of relations after a period of strain. The deal enhances momentum toward a long-term trade target of $500 billion by 2030, improves sentiment for Indian equities and the rupee, and is anticipated to benefit export-heavy sectors such as textiles, apparel, and seafood.
Institutional Flows:
On 2 February 2026, provisional data indicated that foreign portfolio investors (FPIs) divested shares amounting to Rs 1,832.46 crore, whereas domestic institutional investors (DIIs) were net purchasers, acquiring shares worth Rs 2,446.33 crore in the Indian equity market. The FIIs have acquired shares valued at Rs 1856.34 up to February 2, 2026. This follows their cash sales of Rs 38,740.12 in January 2026 and Rs 34,349.62 crore in December.
Global Markets:
On Tuesday, a significant uptick was observed in most Asian indices following the trade deal between the U.S. and India, leading to a pronounced risk-on sentiment throughout the region. Japan’s Nikkei 225 surged by almost 3%, while the Topix experienced an increase of more than 2%. South Korea’s Kospi surged approximately 5%, leading to the implementation of a buy-side trading curb.
U.S. stocks rose overnight as Wall Street began the new month positively, with investors overlooking recent fluctuations in silver and bitcoin, shifting their attention to the forthcoming earnings reports. The Dow Jones Industrial Average rose 1.05%, the S&P 500 gained 0.54%, and the Nasdaq Composite added 0.56%.
Markets are closely monitoring important economic indicators and guidance from the Federal Reserve regarding interest rates, while efforts persist in Washington to prevent a partial government shutdown. Data releases are currently on hold, as the U.S. Bureau of Labor Statistics has delayed the January jobs report along with other labor data until federal operations are back to normal.
Domestic Market:
Equity benchmarks made a notable recovery on Monday, reversing a two-session decline as investors assessed the union budget’s impact on market sentiment and capital flows. Buying momentum reemerged even with suggestions to increase taxes on securities transactions involving derivatives and a lack of new measures to attract foreign investment. The Nifty has regained ground above the 25,050 level, driven by strong performances in the auto, energy, and metal sectors.
The S&P BSE Sensex surged by 943.52 points, reflecting a 1.17% increase, reaching a total of 81,666.46. The Nifty 50 index surged by 262.95 points, reflecting a 1.06% increase, reaching a level of 25,088.40. Over the last two trading sessions, the Sensex experienced a decrease of 0.73%, and the Nifty saw a decline of 0.91%.