Indian equity markets experienced a historic rally on Tuesday, with the BSE Sensex jumping nearly 2,300 points and the NSE Nifty gaining more than 726 points by around 10:40 am, marking their biggest single-day gains in months. As reported by India Blooms, the rally followed US President Donald Trump's announcement on Monday that Washington had finalised a trade deal with New Delhi, reducing tariffs on Indian goods to 18% from the previous 25%. The breakthrough came after months of tariff-related tensions between the two countries, during which the US imposed steep levies on Indian goods, including penalties linked to India's imports of Russian oil. The development coincided with External Affairs Minister S Jaishankar's visit to the United States for a ministerial meeting on critical minerals, underscoring the broader strategic context of the agreement.
Finance Minister Nirmala Sitharaman has welcomed the tariff reduction as a significant development for Indian exporters, stating that the 18% rate is comparable with many competitors and can immediately help exporters. According to Economic Times, Sitharaman emphasized that the positive movement towards India in terms of tariff reduction sets signals that the relationship is on an uptick and can influence decision-making of equity and fund flows into India. She noted that the reduction opens up fresh avenues and draws India to the centre stage, with India and China contributing 43% of all global GDP growth, positioning the country at a different level altogether. The minister highlighted that big investors normally see the weathervane, and with this conversation about the US tariff reduction, there is a clear indication in which way fund flows will also rejig.
Under the agreement, the United States will immediately lower its reciprocal tariff on Indian imports from 25% to 18%, with Trump announcing the decision on Truth Social, stating the deal was reached "out of friendship and respect" for Prime Minister Narendra Modi. According to India Blooms, the agreement reportedly includes broader commercial commitments, with India expected to expand purchases of American products across sectors such as energy, technology and agriculture. Trump also said India would halt purchases of Russian oil and significantly increase energy imports from the United States, linking the move to broader efforts to end the war in Ukraine. Prime Minister Modi welcomed the tariff revision and praised Trump's leadership, calling it "vital for global peace, stability and prosperity."
Responsive Industries shares experienced a significant surge of 17% during Tuesday's trading session, opening at an intraday low of ₹173.50 on the BSE and touching a high of ₹195.20 per share. According to reports from Mint, the stock opened with strong gap-up momentum and witnessed follow-through buying, with prices rising over 15% as the stock moved above its short-term moving averages. Technical analyst Rajesh Bhosale from Angel One noted that the upside momentum could extend further, with the 200-day simple moving average placed around the 210 zone acting as the next key target.
The stock surge was triggered by an agreement between India and the US on a trade deal that will reduce the reciprocal tariff on Indian products from 25% to 18%. As reported by Mint, Responsive Industries stated that approximately 40-41% of its total export revenue of ₹247 crore for FY25, which is around $29-30 million, originated from the US market. The company's business in the US is primarily driven by high-margin Luxury Vinyl Plank (LVP) flooring, resilient flooring, and synthetic leather offerings, with a dedicated distribution center in Simpsonville, South Carolina facilitating next-day deliveries.
According to the company's press release reported by Mint, Responsive Industries is actively broadening its presence in the US market to capitalize on the increasing popularity of luxury vinyl tile (LVT) products, especially in high-demand residential and commercial sectors. The company is expanding its B2C reach in the US with brands like ALLURE, TRANQUIL, BELLISIMO, and RESONATE. This strategic approach is designed to enhance the company's standing in the US flooring market and promote higher-margin growth in exports, leveraging the reduced tariff environment to strengthen its competitive position.
From a technical perspective, as reported by Mint, analyst Rajesh Bhosale from Angel One noted that the sharp momentum has pushed the stock above its short-term moving averages. The immediate support level is seen near the ₹180 mark, while the upside momentum could extend further with the 200-day simple moving average acting as the next key target around the ₹210 zone. This technical setup suggests continued bullish momentum following the positive trade deal developments and the broader market rally that accompanied the announcement.
