Benchmark stock market indices Sensex and Nifty are likely to open higher on Friday, if Gift Nifty is to go by, thanks to the overnight meeting of Indian Prime Minister Narendra Bank with the US President Donald Trump, where the two announced plans to firm up "some wonderful trade deals" for India and the US.
Gift Nifty at NSEIX last quoted at 23,194, up 97.50 points or 0.42 per cent, hinting at a gap-up opening for the index. Market participants were closely monitoring the outcome of the Trump-Modi discussions for any trade and tariff concessions for a potential pullback rally.
PM Modi and Trump discussed broadening of the bilateral partnership, including in the areas of energy, defence and critical technology. They also made brief statements to the US media, a couple of hours after the US President announced a new reciprocal tariff policy for all the trading partners of the US.
Trump said his administration would closely work with India and announce a few big trade deals in the very near future, PTI reported him as saying. This includes oil & gas purchases from the US. The two countries are looking to boost bilateral trade to $500 billion by 2030 from $129.2 billion in 2024.
US markets settled higher overnight, with Dow Jones gaining 342.87 points or 0.77 per cent to 44,711.43. S&P 500 climbed over 1 per cent. Asian markets were mixed earlier today, with Japan and mainland China markets falling, but Hong Kong and Korea markets rising.
India, Nomura in a recent note said, stands out as having much higher relative tariff rates and is exposed to reciprocal tariffs. US accounts for 18 per cent of India’s total exports (2.2 per cent of GDP, as of FY24) and is India’s largest export destination, with the India-US trade surplus rising in recent years to a high of $38 billion in 2024.
Nomura said India aimed to avoid confrontation with the US. In the recently announced Budget 2025, it reduced import duties on products across electronics and textiles sectors, and also high-end motorcycles. India also offered the Trump administration an early political win by agreeing to take back over 100 illegal immigrants.
"It is also proactively considering reducing tariffs on over 30 items, including luxury vehicles, solar cells and chemicals," Nomura India said earlier.
Nomura said India is looking to engage with the US and attract more supply chains into the country over the medium term.