The sharp surge in levels comes after US President Donald Trump said that he loves India and both countries are working on a trade deal. The President had phoned Prime Minister Narendra Modi to wish Happy Diwali.
After three brutal months of foreign exodus, Dalal Street is roaring back to life, powered by a dramatic U-turn from foreign institutional investors (FIIs) who have pumped over Rs 7,300 crore back into Indian equities. The 50-share Nifty now sits tantalizingly close to its all-time high, just by a mere 410 points at 26,277. Tomorrow, October 23, could be the day when a new record is set.
The stock market was open for an hour yesterday on account of Muhurat Trading, where the frontline indices ended the auspicious session in the green.
India and the US are in an extensive and advanced stage of talks on a trade deal that could see tariffs on Indian exports drop to 15% to 16% from the current 50%, Mint reported, citing sources.
Earlier, Chief Economic Advisor (CEA) V Anantha Nageswaran was optimistic about the tariff dispute between the two countries, and said that the issue would be resolved within the next two months, leading to the eventual withdrawal of the White House-imposed penal levies.
The trade deal could be announced at the ASEAN Summit later this month between US President Donald Trump and Prime Minister Narendra Modi. However, the two leaders have yet to confirm their participation in the summit.
The US is India’s biggest merchandise importer, and is one of the few major economies with which New Delhi generally runs a trade surplus.
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