India-US Trade Deal / What will be the impact of the trade deal on the market? These sectors will be monitored

India-US Trade Deal: The ongoing trade deal talks between India and the US are now in their final stages. US President Donald Trump had announced a 90-day tariff freeze, which expires on July 9, 2025. Meanwhile, India's Commerce Minister Piyush Goyal has clarified that India will not enter into a trade deal under any pressure. This deal will happen only if it is completely in India's interest. When Trump announced the tariff, there was pressure in the global and Indian stock markets. Let us understand how important this deal is for India and what impact it can have on the stock market.

Latest update of the talks

Recently the Indian team has returned from talks in Washington. According to a PTI report, an interim trade deal was discussed between the two countries, but some issues in the agriculture and auto sectors are still unresolved. If these issues are resolved, many Indian sectors can benefit from it.

What will be the impact on the stock market?

Experts believe that if the trade deal between India and the US is finalised, the stock market may see a boom. According to Sujan Hazra, Chief Economist, Anand Rathi Group, the deal will increase the confidence of foreign investors in the Indian markets, which will lead to capital flow into the stock market and the value of the Indian rupee may also strengthen. However, if the deal does not meet expectations, market volatility may increase. Export-based sectors such as textiles and pharmaceuticals may suffer losses.

Which sectors will be in focus?

• According to experts, the following sectors may benefit the most from the trade deal:
• IT: Possibility of increase in technical exports.
• Pharmaceuticals: In 2023, pharma exports to the US were worth $8 billion, which may increase further if tariffs are reduced.
• Auto Components: The auto sector may get new markets and opportunities.
• Electronics: Exports of $6.6 billion in 2023, with further growth possible.

Textiles: Exports of $9.7 billion in 2023, which may increase further after the deal.

Harshal Dasani, Business Head, INVasset PMS, says that textile, pharma and electronics sectors will get more opportunities in the market. However, challenges may remain in the agriculture and dairy sectors, as the tariff structure is still a big issue. Apart from this, the deal may also increase foreign direct investment (FDI). FDI increased by 14% in FY 2024-25, in which the service sector got a large share.

Suggestion for investors

In a Mint report, Bonanza Senior Research Analyst Nitin Jain suggests that investors should be cautious. Investment in domestic sectors like banking and FMCG can be safe, as they are less affected by global fluctuations. Caution should be exercised in sectors related to global supply chains such as metals and capital goods. Gold-related ETFs or defensive investments can also help reduce volatility. If there is a slight correction in the market, there may be an opportunity to invest in good stocks for the long term.