5 Big Good News from Modi Trump Meeting – Investors’ eyes on these important Decisions

5 Big Good News from Modi Trump Meeting – Investors’ eyes on these important Decisions

Modi Trump Meeting: Prime Minister Narendra Modi and former US President Donald Trump are going to have an important meeting today on 13 February. In this meeting, there is a possibility of discussion on global trade, economic policies and bilateral relations.

This can also affect the Indian stock market. Sectors like manufacturing, defense, IT and pharma can be directly affected by this conversation. Let us know which issues the market is eyeing.

1. Tariff war and ‘China Plus One’ strategy

The most important issue in the Modi-Trump meeting can be tariff war. Challenges for India may increase due to Trump’s “America First” policy. America can increase import duty on Indian products, which can affect IT, pharma and textile sectors.

However, according to Bhavik Thakkar, CEO of ABans Wealth and Investment Managers, “India has already reduced tariffs on many US goods, which may reduce tensions. But the real game will be how India becomes an alternative to China!”

If India gets more support from the US under the ‘China Plus One’ strategy, then the electronics and automobile sectors can see tremendous growth.

2. Big deal expected in the defense sector

There may be discussions between India and the US about defense deals. The US may try to sell state-of-the-art weapons and defense equipment to India. If a big deal happens, then the shares of companies like HAL, Bharat Dynamics, Bharat Electronics and L&T may rise.

According to Vikas Gupta, CEO of Omniscience, “If the US agrees to increase investment in the Indian defense sector, then it can give a big benefit to Indian defense companies.” 3. Ban on dumping of cheap goods from China?

Domestic companies are suffering losses due to the flood of Chinese goods in the Indian market. Concrete steps can be taken on this issue in the Modi-Trump meeting.

If strict decisions are taken to stop dumping of cheap goods from China, then the Indian manufacturing sector can get strengthened.

Seven Islands Principal Officer Hemant Shah says, “If a strict policy is made in this meeting regarding dumping of cheap goods from China, then Indian companies will get a big benefit from it.” 4. Relief for Indian IT and pharma sector?

America is a big market for India’s IT and pharma companies, but H-1B visa policy and American regulatory changes remain a cause of concern.

The Modi government would like the Trump administration to give Indian companies more favorable policies for business in America.

Vikas Gupta says, “If America gives relaxation in the new rules for the Indian IT and pharma sector, then it will increase the confidence of investors.” 5. Discussion on dollar vs local currency settlement?

The US may insist on keeping the dollar strong, while India wants to promote trade with Russia and China in Indian Rupee.

If any important decision is taken on this issue, then a big change can be seen in the Indian currency market.

What should investors do?

If there are positive deals in the Modi-Trump meeting, then the Indian stock market can see a boom. Especially the stocks of defense, IT, pharma and manufacturing sectors can jump. Investors are advised to keep a close eye on the market and not take any hasty decisions.

Conclusion

The Indian stock market can get 5 big good news from the Modi-Trump meeting. If there are positive results on the issues of tariff, defense deals, dumping of Chinese goods, IT and pharma sector, then it can prove to be a big booster for the market.

Will there be a new boom in the Indian stock market? Investors are keeping an eye on this!

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