Mumbai: After the US reduced tariffs on India to 18 percent, activity in Indian markets has increased, and the rupee has seen a huge increase in the international market.
The India-US trade deal has had a huge impact on Indian industries, leading to a positive recovery not only in the stock market but also in the value of the rupee.
Meanwhile, the Sensex and Nifty have recorded a huge increase in the stock market. The Sensex rose by 2,072.67 points today to 83,739.13 points, while the Nifty rose by 639.15 points to 25,727.55 points and ended the day’s trading.
Meanwhile, the value of the rupee has also seen a huge increase. The rupee rose by 119 paise to 90.30 against the US dollar in early trade on Tuesday. At the interbank foreign exchange market, the rupee opened at 90.30 against the US dollar, up 119 paise from 91.49 earlier.
The US had reduced the tariff imposed on India to 18 per cent. Forex traders believe this will improve India’s relative position and open the door for FII participation.
Speaking on this, Anil Kumar Bhansali, Treasury Chief and Managing Director, Finrex Treasury Advisors LLP, said, ‘The US-India trade deal announced by President Donald Trump and approved by Prime Minister Narendra Modi after a delay of about 9 months was good news overnight.
In which trade tariffs were reduced to 18 per cent. “This will give our neighboring exporters a comparative advantage compared to Bangladesh and Pakistan,” he said.
Similarly, “we have to wait for the RBI’s stance today and in the coming days. Because it needs to buy a lower dollar position,” he said.
Impact on oil market too:
The India-US deal also had an impact on the international oil market, with global oil benchmark Brent crude oil trading 0.41 per cent lower at USD 66.03 per barrel in futures trade.
Foreign institutional investors sold shares worth Rs 1,832.46 crore on Monday, exchange data showed.