US-India Trade Deal: Uncertainty Ends, Foreign Investors Eye India Again

• The US-India trade deal has removed tariff uncertainty, potentially attracting foreign investors back to India.
• Indian equities, which underperformed globally, could see renewed interest from foreign capital.
• The deal is expected to stabilize the rupee, with a new balance point closer to 90 against the dollar, making Indian assets attractive.
• Export-oriented sectors, especially mid and small-caps, are likely to recover as tariff uncertainty diminishes.
• Money may shift from gold and silver back to equities as market sentiment improves, though bond markets might see limited short-term foreign investment.

Why It Matters: The US-India trade deal removes uncertainty, stabilizing the rupee and attracting foreign investment back to India.