India–US trade deal talks lift markets, but should investors stay cautious?

Indian markets saw a sharp uptick after fresh signals on progress in the India–US trade deal, with investors reacting positively to renewed dialogue between the two countries.

Sudip Bandyopadhyay, Group Chairman of Inditrade Capital, said the development was well received by the market. “Today is a positive development. The market has really appreciated this, which is why we saw a sudden spurt of more than 100 points. This was bound to happen as the trade issue was troubling the market,” he said.

He added that beyond economics, the deal carries strong psychological weight. “Apart from the economic impact, it has a significant psychological effect on foreign investors. Any sign of progress reduces risk aversion towards India and supports market confidence,” Bandyopadhyay said.

However, he urged investors not to get carried away. “Too much should not be attached to this statement. There are still challenges, and we need to see how they are navigated. A workable middle path is essential,” he said.

On export-oriented sectors, Bandyopadhyay advised caution. “We have seen similar rallies before, followed by disappointment. Investors should avoid going whole hog at this stage and wait for clearer outcomes,” he added.

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