Aniket PujariIndia-US trade deal: After the announcement of the India-US trade deal on Monday last week, the India-US interim trade pact was announced on Friday evening. In a joint statement on Friday, both countries announced the India-US joint statement on the interim trade pact, which sent the Dow Jones to a record 50,000. As the Indian stock market was closed on Saturday and Sunday, experts expect a positive opening on Monday.
According to stock market experts, after the announcement of the India-US trade deal on Monday last week, the India-US joint statement on the interim trade pact is expected to bring clarity amongst DIIs, FIIs and retail investors. They said that the India-US interim trade pact would benefit export-oriented sectors such as auto, IT, pharma, chemical, defence, textile, gems and jewellery, and apparel. They said the India-US deal is expected to strengthen the Indian Rupee against the major global currencies, including the US Dollar, which is important for bringing FIIs back to the Indian markets.
India-US trade deal to boost FIIs’ sentiments
Expecting a gap-up opening on Monday at Dalal Street, Sandeep Pandey, Co-founder of Basav Capital, said, “The India-US joint statement on the interim trade pact has finally put some clear picture about the trade deal. This will eradicate confusion and bring clarity to the minds of investors, whether they are DIIs, FIIs, or retail investors. It is also clear that the 25% reciprocal tariff imposed in India for the Russian crude oil import is removed, and the 25% tariff will come down to 18% once the India-US trade deal is signed and implemented. As market discounts ahead of the event, export-oriented segments are expected to attract investors on Monday, when the NSE and BSE reopen after the weekend close.”
Speaking on the benefit of the India-US interim trade pact, Avinash Gorakshkar, a SEBI-registered fundamental equity analyst, said, “The India-US deal is expected to benefit export-oriented segments like auto, pharma, IT, chemical, defence, textile, gems and jewellery, apparel, etc. This will boost inflows into the US Dollar, helping the Indian Rupee regain lost ground. In the wake of the Indian Rupee gaining strength against the US Dollar and other global currencies, FIIs are expected to come back to the Indian stock market.”
India-US deal: Stocks to buy on Monday
On stocks to buy in the wake of the India-US interim trade pact and the reduction of Trump’s tariffs on India, Anuj Gupta, a SEBI-registered market expert, recommended 21 stocks to buy on Monday from the auto, IT, pharma, textile, and defence sectors.
Pharma: Aurobindo Pharma, Cipla, and Glenmark Pharmaceuticals.
Defence: BEL, HAL, and Cochin Shipyard.
IT: TechM, HCL Tech, Wipro, and Infosys.
Textile: Trident and Welspun Living.
Auto and Auto Ancillary: Eicher Motors, Tata Motors, TVS Motor, Bajaj Auto, JBM Auto, Bosch, Amara Raja, Exide Industries, and UNO Minda.
Indian stock market outlook
Speaking on the outlook of the Nifty 50 / BSE Sensex today, Shrikant Chouhan, Head — Equity Research at Kotak Securities, said, “We are of the view that the intraday market texture is weak, but a fresh selloff is possible only if 25,600/83,200 is dismissed below. The market could then slip till 25,500-25,350/83,000-82,500. On the flip side, 25,800/83,800 would act as an immediate resistance zone. Above this, it could move up to 25,900-25,925/84,000-84,200.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
