D-Street does a jig! India–US trade deal lifts sentiment, but earnings to drive market returns

February 4, 2026

The India-US trade deal has eased tariff uncertainty, boosting investor sentiment and suggesting market stress may have peaked. While not a game-changer, the agreement is expected to align equity returns with corporate earnings, projected at 12-15% in 2026. Fund managers recommend diversified portfolios, export sectors, and selective mid and small-cap investments.

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