While the devil is in the details, it removes a hanging sword over rupee, equity and rates market: Kotak AMC's Nilesh Shah

India and US Seal Major Trade Deal Amid Uncertainty

Negotiations between India and the United States have finally yielded a major trade agreement, marking a significant step towards easing trade-related tensions between the two countries.

Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, reacted to the announcement made by US President Donald Trump on his social media platform, saying the deal brings much-needed relief to financial markets.

• The agreement includes a reduction in reciprocal tariffs to 18 per cent, a crucial step towards resolving trade uncertainty.
• The deal has the potential to benefit both economies, as long as it is implemented constructively.

Key Points of the Agreement:

• Reduction in reciprocal tariffs to 18 per cent
• Removal of a major trade-related uncertainty for investor confidence
• Potential for both economies to benefit through cooperation

Financial markets, particularly currency, equity, and bond markets, are expected to benefit from the deal, as it helps to stabilise sentiment.

Nilesh Shah's Reaction:

“While the devil is in the details, it removes a hanging sword over rupee, equity and rates market,” Shah said, highlighting the importance of resolving trade uncertainty for investor confidence.

“Let us hope that it is a win-win deal for both the countries as they have a lot to gain through cooperation,” Shah added.