Nifty jumps 5% on India-US trade deal
The fresh India-US trade deal just gave the Nifty index a big boost, jumping nearly 5% and inching close to all-time highs.
The agreement cuts US tariffs on Indian goods from 25% to 18%, and could boost US exports of energy, tech, agriculture, and coal.
Deal brings back foreign investors, strengthens rupee
This deal is a win for India's economy—analysts say it could help bring back foreign investors and strengthen the rupee.
With exports now more competitive, analysts say Nifty earnings could improve over the coming fiscal years, so things are looking up for Indian markets.
Plus, stock valuations are actually below their usual average.
IT, telecom, finance sectors set for gains
India is stepping up as a real alternative to China in US supply chains thanks to these tariff cuts.
Sectors like finance, IT, telecom—and export-focused companies—are set for gains.
Some analysts caution oil marketing companies could be hurt if India reduces purchases of Russian crude, even though the deal could lead to increased US energy exports over time.