Core Viewpoint - The United States will reduce its punitive tariff on Indian imports from 25% to 18% as part of a new trade deal with India, which involves India ceasing its purchases of Russian crude oil and increasing imports from the U.S. [1][2][4] Trade Agreement Details - The agreement is framed as a significant geopolitical win, with India agreeing to stop buying Russian oil and to increase purchases from the U.S. and potentially Venezuela, contributing to efforts to end the war in Ukraine [2][4] - The deal is characterized by a deepening of U.S.-India trade and energy ties, marking a shift from previous tariff escalations [4][6] - The U.S. will cut its "reciprocal tariff" on Indian goods to 18%, while India will eliminate tariffs and non-tariff barriers on American products [8][10] Economic Impact - Following the announcement, India's Nifty 50 index futures surged by 3.8%, and the U.S.-listed iShares MSCI India ETF rose by 2.4%, indicating positive market sentiment [5] - The Indian rupee gained 1% against the dollar in offshore trading, reflecting investor confidence in the new trade dynamics [5] Energy Sourcing Challenges - India has been importing approximately 1.5 million barrels per day of Russian crude, and transitioning away from this sourcing will be complex and time-consuming [7] - Indian officials have previously defended these imports as essential for energy security, highlighting the challenges in shifting energy sourcing [7] Future Commitments - Modi has committed to a substantial "BUY AMERICAN" initiative, which includes over $500 billion in U.S. energy, technology, agriculture, coal, and other exports [8]

The S&P Among Sensex constituents, shares of Axis Bank, Eternal, The broader market showed little conviction, with mid-cap and small-cap indices trading largely flat.In single stocks, Live Events climbed 2% on reports that the state-run telecom and ICT services provider is in talks with Elon Musk-owned Starlink over a potential partnership in India.Expert viewsRecent sharp fall in the rupee and crude has been attracting the attention of investors and decline in crude, on poor demand from China and the US, ...