The domestic market saw a sharp rally on Tuesday after an India-US trade deal was announced. While there are positive triggers such as trade deal optimism, Budget expectations, and policy announcements, the sustainability of any rally ultimately depends on earnings growth. "The rally fuelled by the US-India trade deal will face hurdles to sustain. But for the market to sustain gains, earnings backing is essential," said Ajit Mishra, SVP of Research at Religare Broking. Short-term market reactions will continue to be driven by sentiment around events such as trade developments and policy announcements.

Source: Mint February 04, 2026 09:58 UTC