Adani Group Stocks Surge 13% as India-US Trade Deal Ignites Market Rally

The Indian equity markets witnessed a significant surge on Tuesday, February 3, 2026, as Adani Group stocks led a broader market recovery. The rally was primarily driven by the announcement of a landmark trade agreement between India and the United States. Adani Green Energy and Adani Enterprises emerged as the top performers, gaining up to 13% in early trade.

The positive sentiment followed news that the US has reduced tariffs on Indian goods to 18%, down from the previous 25%. This move is expected to significantly enhance India's competitive position in global markets, particularly for export-oriented sectors. The market reaction was swift, with benchmark indices Sensex and Nifty reflecting the optimism across various sectors.

Adani Green Energy and Enterprises Lead the Gains

Adani Green Energy Ltd was the standout performer of the day, soaring 12.87% to reach Rs 951.35. The flagship firm, Adani Enterprises Ltd, followed closely with an 11.89% jump, hitting an intraday high of Rs 2,232. These gains reflect investor confidence in the group's global exposure and its ability to benefit from improved trade relations with the US.

Other group entities also saw substantial buying interest. Adani Power Ltd climbed 7.76% to Rs 145, while Adani Energy Solutions Ltd advanced 10% to reach Rs 972.55. The collective market capitalization of the group saw a significant boost during the morning session as benchmark indices rose by nearly 5% in the initial uptick.

Impact of Revised US Tariffs on Indian Goods

The core driver of Tuesday's rally was the revision of US import duties. Analysts noted that the reduction of tariffs to 18% makes Indian products more competitive compared to other major Asian trading partners. This change is particularly beneficial for labor-intensive and export-oriented sectors such as engineering goods, textiles, and gems and jewellery.

Dhiraj Relli, MD & CEO at HDFC Securities, stated that the immediate effectiveness of these tariff cuts would bolster India's export growth. The agreement is seen as a strategic win for Indian manufacturers who have been facing pricing pressures in the North American market over the last year.

Removal of Additional Levies on Russian Crude

The trade deal's provision to eliminate the 25% duty previously applied to India's Russian crude oil purchases is a major relief for the Indian economy. This move is expected to reduce the national import bill and support the recovery of the rupee against the US dollar. By removing this economic friction, the deal fosters greater bilateral economic cooperation between the two nations.

Market experts believe this development will revive foreign equity inflows. As the rupee stabilizes, foreign portfolio investors (FPIs) who were previously cautious are expected to return to the Indian markets, potentially making Indian equities top performers among emerging markets in the coming weeks.

Broader Market Sentiment and Rupee Recovery

The rally was not limited to the Adani Group. The broader market indices, Sensex and Nifty, showed strong upward momentum. The Nifty50 was supported by heavyweights like Reliance Industries, which gained nearly 4%. The overall market sentiment was bolstered by the expectation that the trade deal would address the widening trade deficit and ease inflationary pressures.

The following table summarizes the performance of key Adani Group stocks during the early trade on Tuesday:

Performance of Adani Group Subsidiaries

Adani Ports and Special Economic Zone Ltd advanced 8.35% to Rs 1,519.80. Analysts from Antique Stock Broking expect the company to report a 20.4% year-on-year growth in consolidated revenue, driven by a 52% surge in the logistics segment. The trade deal is expected to further increase cargo volumes at Mundra and other key ports managed by the group.

Other group companies like Adani Total Gas Ltd gained 7.55% to trade at Rs 558.10. Even the group's cement businesses, Ambuja Cements and ACC, saw gains of 5.85% and 3% respectively. Smaller entities like NDTV and Sanghi Industries also participated in the rally, rising between 4% and 6% as risk appetite returned to the broader market.

Financials and Index Heavyweights Join the Upswing

The financial sector also witnessed a surge in buying. Jio Financial Services rose over 7%, while Shriram Finance and Bajaj Finance gained more than 4% each. The improvement in risk appetite among investors led to a rotation into high-beta names and liquid stocks across the banking and financial services sectors, which are expected to benefit from increased economic activity.

Reliance Industries' 3.91% gain to Rs 1,444.80 provided the necessary weight to keep the benchmark indices in the green. The strength in refining-linked stocks was a direct reaction to the easing of trade tensions and the potential for a firmer rupee easing import pressures over time.

Legal Clarifications and US SEC Proceedings

The rally comes amid ongoing legal developments in the United States. Adani Group recently clarified that its listed entities are not parties to the civil lawsuit filed by the US SEC. The group has denied all allegations of wrongdoing and stated it will pursue all available legal remedies to defend its position against what it calls baseless claims.

Lawyers representing Gautam Adani and Sagar Adani have signaled a willingness to negotiate with the US SEC regarding the service of summons. This move to resolve procedural issues through dialogue has helped mitigate some investor concerns that had caused significant volatility in the previous week's trading sessions.

Analyst Perspectives on Market Valuations

Analysts at Emkay Global suggested that market valuations have corrected to five-year historical averages, making several stocks attractive for long-term investors. They noted that significant capital had been waiting on the sidelines due to concerns over the falling rupee, and the trade deal could be the trigger for this money to enter the market.

Garima Kapoor of Elara Securities mentioned that MSCI India had underperformed other emerging markets recently, and this trade deal could lead to a period of outperformance. The positive earnings momentum for the fiscal year 2027 is also expected to support the current rally as corporate India prepares for a growth phase.

Trade Deal Comparison: Previous vs New

The following table highlights the key changes brought about by the India-US trade agreement:

Future Outlook and Upcoming Investor Engagements

Looking ahead, the Adani Group is scheduled to hold its Annual Conference in the United States on February 9-10, 2026. This event will provide an opportunity for the management to interact with global investors and analysts, potentially providing further clarity on the group's expansion plans and debt management strategies.

While the trade deal is a significant positive trigger, market experts advise a selective approach. Investors are keeping a close watch on the upcoming quarterly results of Adani Enterprises and Adani Ports. The long-term outlook remains tied to the group's execution of its massive infrastructure and renewable energy projects across the country.