Stars finally align on trade optimism

TECHNICAL ANALYSIS

- VK SHARMA

THE MARKETS HIT a four-month low on Budget day. But subsequent developments suggest that the stars are finally aligning for India.

The US, which had been in a threatening and punitive mode on trade tariffs since April 2025, finally relented on February 2 and announced a trade deal, the contours of which will be chiselled later. A combination of restraint, studied silence, and some plain speaking backed by facts and figures by the government drove home the point that India was not anti-US but was merely ensuring fair play for its people.

The US buckled under pressure when it saw that the India-EU deal was imminent.

Its representatives were in South Block even while the EU team was in India during the January 25-27 period.