Following the meeting between Prime Minister Narendra Modi and US President Donald Trump, multiple sectors in the Indian stock market may see movement based on key announcements made during the bilateral discussions.
Defence and Aerospace
With the US announcing plans to provide India with F-35 stealth fighter jets and increasing military sales by billions of dollars, stocks in the defence and aerospace sector may be in focus. Companies engaged in defence manufacturing and collaborations with US firms, such as Hindustan Aeronautics Limited (HAL), Bharat Electronics (BEL), Bharat Dynamics (BDL), Larsen & Toubro (L&T), and Data Patterns, may see investor interest.
Energy and Oil & Gas
The US is set to become a leading supplier of oil and gas to India as part of a new energy agreement. This development may draw attention to companies involved in oil refining, exploration, and gas distribution, including ONGC, Reliance Industries (RIL), Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL), and GAIL.
Infrastructure & Logistics
India and the US have agreed to work together on the India-Middle East-Europe Economic Corridor (IMEC), which aims to create a strategic trade route. Companies engaged in infrastructure, ports, and logistics, such as Larsen & Toubro (L&T), Adani Ports, Container Corporation of India (Concor), IRB Infrastructure, and Rail Vikas Nigam Limited (RVNL), may see movement.
Nuclear Energy
India is reforming its laws to facilitate the entry of US nuclear technology into its energy sector. This could bring attention to companies in the nuclear power and energy space, including NTPC, NPCIL (if listed), Tata Power, and L&T, which have exposure to nuclear power infrastructure.
Information Technology & AI
India and the US have announced the launch of the Autonomous System Industry Alliance, focusing on advancements in automation and AI-driven technologies. Companies in the IT and automation sector, such as TCS, Infosys, HCL Tech, Wipro, and LTIMindtree, may be in focus.
Banking & Financials
The commitment to double bilateral trade to $500 billion by 2030 could bring attention to the banking and financial sector, as increased trade flows may impact companies with global exposure. Banks such as HDFC Bank, ICICI Bank, Axis Bank, and SBI may see investor interest.
Renewable Energy & Clean Tech
India has expressed interest in adopting US nuclear technology for clean and affordable electricity, which could impact companies in the renewable energy sector. Companies such as Tata Power, Adani Green Energy, and ReNew Power may be on investors’ radar.
Market Overview
The meeting between India and the US covered trade, defence, nuclear energy, infrastructure, and technology collaborations, among other areas. Market participants will monitor further developments and policy implementations arising from these discussions.
