From auto to chemicals: Key sectors to in focus post India-US trade pact
With the "hanging sword" of trade uncertainty finally removed, market participants are pivoting toward export-heavy sectors poised to benefit from India-US trade deal
 "From auto to chemicals: Key sectors to in focus post India-US trade pact")
The landmark trade agreement between the United States (US) and India—headlined by a reduction in reciprocal tariffs to 18 per cent—has triggered a wave of optimism across Dalal Street.
US President Donald Trump on Monday announced a trade deal with India, reducing the reciprocal tariff on Indian goods. The announcement, made via a post on Truth Social, followed a phone call between Trump and Prime Minister Narendra Modi.
“The reduction in tariffs under the newly signed India–US trade deal is a meaningful positive for Indian equities, both from a sentiment and earnings visibility standpoint. The sharp surge in GIFT Nifty reflects an immediate repricing of risk, driven by expectations of improved trade competitiveness, lower input costs for exporters, and stronger bilateral economic alignment between the two countries,” said Sonam Srivastava, Founder and Fund Manager at Wright Research PMS.
With the "hanging sword" of trade uncertainty finally removed, market participants are pivoting toward export-heavy sectors poised to gain from improved price competitiveness and enhanced order visibility in America. Analysts believe lower barriers will translate into better order inflows, margin stability, and higher capacity utilisation for Indian firms in their largest export destination. CATCH STOCK MARKET UPDATES TODAY LIVE
Sectors in the spotlight after India US trade deal finalised
Export-oriented manufacturing
Srivastava believes segments such as IT services, pharmaceuticals, specialty chemicals, auto ancillaries, and select engineering goods stand to benefit the most. Meanwhile, Divam Sharma, Co-founder and Fund Manager at Green Portfolio PMS, reckons that textiles and apparel, agro and seafood exports, and consumer manufacturers with significant US exposure are also key beneficiaries. Additionally, the gems and jewellery and food processing segments are expected to see a positive rub-off.
Logistics and trade enablers
As export volumes are expected to pick up, logistics providers, port operators, and freight-forwarding firms are likely to see improved sentiment and higher throughput. ALSO READ | India-US trade deal: Time to buy stocks; Nifty target 28,100, says Bernstein
Macro-sensitive beneficiaries
Banks and non-banking financial companies (NBFCs) are also expected to benefit from the improved macro environment. According to a report by Nomura, sectors that were previously facing higher US tariffs—including textiles, gems and jewellery, chemicals, engineering, food processing, and marine goods—constitute 4–12 per cent of total bank lending. While the actual tariff-linked exposure is smaller (as these figures include non-US activities), the deal provides a significant cushion to the asset quality of these export-oriented portfolios.
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