The Indian stock market has shown a notable recovery following the announcement of a trade deal with the United States, first declared on February 2nd. Post-announcement, the market experienced a significant surge on February 3rd, but subsequent discussions raised questions about the specifics of the deal, particularly concerning which sectors would be affected positively or negatively. Allegations arose about American pressure on sectors like agriculture and dairy prompted a need for clarity regarding the terms of the deal.

In response to the skepticism, Indian Union Minister Piyush Goyal clarified that both the agriculture and dairy sectors are entirely excluded from the deal. He emphasized that fears of American influence in these sectors are unfounded and reassured that the trade deal is likely to yield long-term benefits for India. Goyal provided a sector-by-sector analysis showing how different industries stand to benefit from this agreement, aiming to reinforce market confidence and investor sentiments.

As more information about the deal was shared, analysts anticipated a 'real celebration' in the stock market as trading resumed on Monday. Investors were keenly observing which sectors would see the most gains, and there was an expectation of increased activity in stocks related to those sectors. This growing optimism surrounding the trade deal continues to play a crucial role in shaping investor behavior in the Indian markets and reflects an essential shift in the market's response to international trade agreements.