Market expert Chakri Lokapriya, in an interview with ET Now, welcomed the development, saying: “It is good to note that Trump and Modi want to be friends again, and that is indeed very good news for the market because all sectors—whether IT, pharma, or auto ancillaries—would benefit. In addition, the overall environment, with the positive US talks plus GST cuts, will lead to earnings upgrades. Therefore, it is clearly a strong fundamental footing for India.”
Export sectors in focus
With global cues improving, experts believe export-oriented sectors will be the first to gain. “This is clearly a positive catalyst. First, all export-oriented sectors—whether pharma, IT, or auto ancillaries—will benefit. Second, earnings expectations have been fairly subdued across various sectors, stuck in a wait-and-watch mode. If these talks progress further, earnings upgrades will follow across industries, including the industrial sector,” Lokapriya added.
Spotlight on IT
The IT sector has already seen renewed investor interest after Infosys’ buyback announcement. Lokapriya explained: “The sector has been subdued mainly due to US uncertainty impacting demand for Indian IT services. If trade talks proceed well, it could ease collateral damage from restrictions such as visa issues. Moreover, with other countries like the EU already signing trade agreements and expectations of a US rate cut, clarity will boost US IT spending. This makes Indian IT services one of the key beneficiaries.”
Consumption and GST boost
Beyond IT and pharma, consumption-linked sectors are also set to gain from GST rate cuts, especially autos and tyres. Lokapriya pointed out: “GST benefits will trickle down to auto manufacturers, auto ancillaries, and tyre companies. Within tyres, Ceat, JK Tyres, and Apollo Tyres are well positioned. Ceat, with its strong two-wheeler portfolio, will benefit from higher volumes. Auto ancillaries will also gain from increased demand in the auto industry. With Trump talks turning friendlier, auto ancillaries should see further benefits.”
The road ahead
The combination of trade optimism, global IT tailwinds, and domestic policy support appears to be creating a favorable backdrop for Indian markets. While investors await clarity on the US-India trade pact, analysts suggest that the groundwork for earnings upgrades across key sectors is already being laid.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
as a Reliable and Trusted News Source
