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India-US Trade Deal Sparks Market Surge!
3 Feb
Summary
- India and US finalize a significant trade agreement.
- GIFT Nifty surged 800 points following the trade deal news.
- Export-oriented sectors like textiles and shrimp stocks gain.
A pivotal trade agreement has been finalized between India and the United States, significantly impacting India's stock markets. Following the announcement, the GIFT Nifty saw an impressive surge of approximately 800 points in overnight trading. This news is anticipated to have a positive ripple effect on export-oriented industries.
Sectors such as textile stocks, including names like Gokaldas Exports and Welspun Living, along with shrimp stock producers like Avanti Feeds and Apex Frozen Foods, are expected to benefit. The deal could also sentimentally influence IT stocks, as well as auto and auto component manufacturers, with Bharat Forge being a notable mention.
Furthermore, the Nifty 50 is currently 1,300 points away from its record high of 26,377. Today marks the Nifty 50 weekly expiry, which might contribute to further short-covering. A key focus will be on FIIs, who began the series with a net short position of nearly 88%, as they may transition to buyers in the Indian market post the trade deal, as suggested by market analysts.
