stock market recap: Indian stock markets rallied on Tuesday, 3 February, after India and the US confirmed the long-awaited trade deal. US President Donald Trump said that reciprocal tariffs on Indian goods would be reduced to 18%, from 50%. In return, India agreed to significantly lower both tariff and non-tariff barriers on American products, effectively bringing them down to zero.
The benchmark BSE Sensex ended 2072.67 points higher or 2.54% to end at 83,739.13. The Nifty 50 climbed 629.75 points, or 2.51%, to settle at 25,718.15 during the session. Nifty Smallcap and Nifty Midcap indices also surged around 3% in trade today.r
Best stocks to buy today (All Buy trades are rates of Equity & Sell rates are based on F&O)
CENTURY PLY: buy above ₹840 ₹810 target ₹945 (Multiday)
ECLERX: buy above ₹4950 ₹4860 target ₹5350 (Multiday)
SONACOMS: buy above ₹532, stop ₹515 target ₹585(Multiday)
Stock market performance | 3 february
Indian equity markets staged a powerful rally, with both the Nifty 50 and Sensex recording one of their strongest single-day gains in recent months.
The Nifty 50 surged by 710 points, or 2.83%, to close at 25,798, while the Sensex jumped 2,289 points, or 2.80%, to end at 83,956. This broad-based uptrend was fueled by optimism surrounding the Union Budget, which emphasized infrastructure spending and supportive fiscal measures, alongside a steady monetary stance from the Reserve Bank of India.
Investor sentiment was also buoyed by India’s robust GDP growth projection of 7.4% and relatively contained inflation trends, which reinforced confidence in the country’s economic trajectory.
Sectoral performance reflected the bullish mood, with infrastructure and power stocks leading the charge, Power Grid alone surged more than 7%. Banking and financial counters also advanced strongly, supported by expectations of credit growth and stable interest rates, while IT and pharma stocks posted moderate gains on resilient global demand. The rally was underpinned by foreign institutional inflows, signaling renewed global confidence in Indian markets.
Outlook for trading
Although the sharp rebound followed initial caution after the Budget announcement, particularly around changes in securities transaction tax, the market quickly regained momentum as traders positioned for medium-term growth opportunities. While risks remain in the form of potential volatility, global monetary shifts, and corporate earnings alignment, the session on 3rd February 2026 marked a decisive bullish turn, setting the stage for continued optimism in Indian equities.
The trade deal has once again given the much-needed revival cues that we were talking about resulting in some upbeat momentum across the board. With FIIs remaining heavy sellers ahead of the Budget would look to now cover their short positions as the positive vibes emerging from the deals that have been entered by India could help the market revive.
Option data readings indicate that the tides have definitely turned in favor of the bullish camp and with 25700 Put generating some strong Put writing with some possibility of upside that can emerge as things start becoming cleared about the deals. As the RBI policy is expected in next two days we will be able to get more confirmation on the lows being sealed for the near term.
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Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
CENTURYPLY (current market price ₹835.55) – buy above ₹840 ₹810 target ₹945 (Multiday)
- Why it’s recommended: Century Plyboards (India) Ltd., commonly known as Century Ply, is India’s largest manufacturer and seller of plywood and decorative veneers holding a dominant 25-30% market share in the country’s organized plywood sector. Strong thrust above the cloud region we can now look at some bullish momentum to develop that can help an upmove in the next few weeks. As some fresh buying is emerging once again as momentum begins to pick pace, consider going long.
- Key metrics:
- P/E Ratio: 67.40
- 52-week high: ₹895
- Volume: 118.37K
- Technical analysis: Support at ₹725, resistance at ₹1100.
- Risk factors: Raw Material Price Volatility working capital-intensive and vulnerable to any slowdowns in this sector.
- Buy: above ₹840.
- Stop loss: ₹810.
- Target price: ₹945 (2 Months)
ECLERX (current market price ₹4947) – buy above ₹4950 ₹4860 target ₹5350 (Multiday)
- Why it’s recommended: eClerx Services Ltd is a global Business Process Management (BPM) and Data Analytics firm that provides specialized solutions to over 50 Fortune 500 companies. A surprise in Q3 earnings has ensured that the recent highs are not given up and recent dips that are emerging to stage a sharp revival leading to a strong upward traction. The long body candle seen on Sunday despite large scale volatility highlights that we can look for a push to higher levels. Go long now.
- Key metrics:
- P/E: 53.63,
- 52-week high: ₹4985.95,
- Volume: 133.63K.
- Technical analysis: Support at ₹4840, resistance at ₹5500.
- Risk factors: Heavy client concentration, potential margin pressure from wage hikes and competition, reliance on legacy businesses, risks from automation.
- Buy: above ₹4950
- Stop loss: ₹4860
- Target price: ₹5350 (2 Months)
SONA COMMS (current market price ₹530.20) – buy above ₹532, stop ₹515 target ₹585(Multiday)
- Why it’s recommended: Sona Comstar (Sona BLW Precision Forgings Ltd) is a leading Indian automotive technology company specializing in designing and manufacturing critical, highly engineered components for both traditional and electric vehicles. After some consolidation post profit booking seen since December 2025 highs the prices formed a nice support to fuel V shaped recovery to stage above the cloud region. The US-India trade deal could help sustain the prices. With steady momentum support fueling some upside the Budget could provide some fuel. Buy.
- Key metrics:
- P/E Ratio: 55.77
- 52-week high: ₹559.40
- Volume: 15.75M
- Technical analysis: Support at ₹450, resistance at ₹650.
- Risk factors: Fragmented market, reliance on network infrastructure, challenges in controlling operating costs, and volatile financial performance.
- Buy: above ₹532.
- Stop loss: ₹515.
- Target price: ₹585 (2 Months)
Raja Venkatraman is co-founder, NeoTrader. His SEBI-registered research analyst registration no. isINH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
