India-US Trade Deal Spurs Market Rally Amid Cautious Outlook on Sustained Gains

The recently finalized India-US trade deal, which reduces US tariffs on Indian goods from 50% to 18%, has boosted investor confidence and triggered significant foreign institutional investor buying in Indian equity markets. This development has lifted market sentiment, leading to rallies in benchmark indices and gains in export-oriented sectors. However, analysts caution that medium-term returns may remain moderate due to uncertainties over deal specifics, geopolitical risks, and reliance on corporate earnings for sustained growth. The deal is also seen as incrementally positive for companies like Reliance Industries due to improved crude oil sourcing options.