US President Donald Trump’s remark that India is unlikely to buy “too much oil” from Moscow, his greetings to PM Narendra Modi on Diwali, along with reports suggesting that New Delhi and Washington are close to finalising a long-pending trade agreement, could extend Diwali cheer for Indian equity investors. Advertisement

According to reports, the proposed trade deal may see the United States reduce tariffs on Indian imports to 15–16 per cent from the current 50 per cent. To be sure, the 50 per cent tariff is weighing on domestic exports, with merchandise trade deficit widening to $32.2 billion in September from $26.5 billion in August.

Nomura India in a note said the impact of 50 per cent US tariffs is clearly visible as export to the US degrew 11.9 per cent YoY in September, while pick

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