No Direct Tariff Relief for Metals in India-US Trade Deal, But Indirect Boost Expected

• ICICI Securities notes that the 50% tariff on aluminium and steel will continue under the new India-US trade agreement, offering no direct relief to the metal sector.
• Despite no direct tariff cuts, Vikash Singh of ICICI Securities suggests an indirect demand boost for metal companies due to improved trade flows in related sectors.
• Silver price estimates have been significantly revised upwards, with current projections at $90 per ounce, up from earlier estimates of $53–$57 per ounce.
• ICICI Securities maintains a positive long-term stance on select metal companies, including Vedanta, despite recent stock movements.
• The preference is currently for ferrous metals over non-ferrous, with Tata Steel and Vedanta highlighted as preferred picks due to commodity exposure and demand outlook.

Why It Matters: India-US trade deal offers no direct metal tariff relief, but indirect demand boost and higher silver prices are expected.