Core Points - Indian Prime Minister Modi is set to visit the UK for two days starting on the 23rd, with a significant free trade agreement expected to be signed on the 24th [1][3] - This visit marks Modi's fourth trip to the UK since taking office [1] Group 1: Trade Agreement Details - The free trade agreement will allow 99% of Indian exports to the UK to enjoy zero tariffs, covering sectors such as jewelry, textiles, engineering products, leather, clothing, and processed foods [3] - In exchange, 90% of UK exports to India will receive phased tariff reductions, with immediate cuts for Scottish whisky tariffs from 150% to 75%, and further reductions to 40% over ten years [3] - Current tariffs on UK automobiles exceeding 100% will be reduced to 10% under a quota system [3] Group 2: Economic Significance - The agreement is seen as the most economically significant trade deal for the UK post-Brexit and marks India's first major free trade agreement outside Asia [3] - Analysts suggest that this agreement signifies the beginning of a long-term economic partnership between the two nations [3]

Core Insights - A US trade team is expected to visit India next month for trade negotiations, with a potential temporary trade agreement by June 25 [1] - India is proposing significant tariff reductions in certain areas while seeking to maintain high tariffs on sensitive agricultural products like grains and dairy [1][2] - The negotiations are still in early stages and may become complicated due to opposition from affected industries [2] Group 1: Trade Negotiations - India has indicated a flexible stance on tariffs for less sensitive agricultural products like almonds and may reduce import duties on oil and gas by 2.5% to 3% [1] - The Indian trade representatives are firm on retaining high tariffs on core agricultural products such as wheat, rice, corn, and dairy [1] - Current tariffs imposed by India include 70%-80% on US rice and 30%-60% on US dairy products [1] Group 2: International Context - India has a history of protecting its dairy industry, being the largest milk producer globally, and has pushed for similar protections in recent trade agreements [2] - Other countries like South Korea and Japan are also engaged in tariff negotiations with the US, focusing on sectors like steel, aluminum, and automobiles [2] - The US has shown a cautious approach towards reviewing tariff measures, particularly in the automotive sector, while being receptive to cooperation in shipbuilding with Japan [2]

Company Performance - Kennametal reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and up from $0.30 per share a year ago, representing an earnings surprise of 80.77% [1] - The company posted revenues of $486.4 million for the quarter ended March 2025, which missed the Zacks Consensus Estimate by 0.80% and decreased from year-ago revenues of $515.79 million [2] - Over the last four quarters, Kennametal has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Outlook - The stock has underperformed the market, losing about 17.5% since the beginning of the year compared to the S&P 500's decline of 4.7% [3] - The current consensus EPS estimate for the coming quarter is $0.37 on revenues of $520.2 million, and for the current fiscal year, it is $1.13 on revenues of $1.97 billion [7] - The estimate revisions trend for Kennametal is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Manufacturing - Tools & Related Products industry, to which Kennametal belongs, is currently in the bottom 11% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Kennametal's stock performance [5]