Indian shares set for gap-up open after US trade deal

Indian equity benchmarks are expected to open higher due to a new trade deal with the U.S., which reduces tariffs on Indian goods from 50% to 18%. This agreement is anticipated to attract foreign investment, alleviating concerns over India's geopolitical isolation. Analysts predict that the deal will lift the pressure of foreign outflows, as foreign portfolio investors have sold $23 billion in shares since early 2025. The market outlook is positive, with India being viewed as an attractive investment destination due to its growth potential and strategic importance.