When the stock market opens on Monday i.e. 9th February, you should focus on some specific shares. In fact, the impact of American tariff reduction and interim trade deal will be visible on the shares of many companies. On February 7, America and India jointly announced an interim trade deal. Also, America removed the 25 percent tax imposed on India on purchasing oil from Russia.
Americans have a major share in the revenue of these companies
Experts say that both the announcements made on February 7 are very important for those Indian companies whose business was affected by American tariffs. These include Samvardhana Motherson (SAMIL), Sona BLW Precision Forgings And companies like Bharat Forge are included. About 19 percent of SAMIL’s revenue comes from America. It has subsidiary companies in America. America’s share in Sona BLW’s revenue is about 41 percent. It also does manufacturing in America.
The competitiveness of the products of Indian companies will increase again.
Uniparts India America’s share in India’s revenue is about 55 percent. About 22 percent of Bharat Forge’s revenue comes from America. However, it also has two manufacturing plants in America. America also has about 5 percent share in the revenue of Happy Forgings. With the reduction of American tariff to 18 percent, the products of these companies will again be able to compete in the American market.
India’s already strong position in the global OEM supply chain
Divam Sharma, co-founder and fund manager of Green Portfolio PMS, said, “The reduction in tariff is a good news for the Indian auto sector. Especially the companies making components will benefit a lot from it. The reason for this is that America’s share in the exports of these companies ranges from 25 to 33 percent.” He said that the reduction in tariff increases the competitiveness of the products of Indian companies in the American market. India already has a strong position in the global OEM supply chain.
There was pressure on the shares of these companies on 6 February
Bharat Forge shares closed 1.40 per cent lower at Rs 1,551 on February 6. This stock has risen 33 percent in the last six months. SAMIL shares fell 2.42 per cent to close at Rs 118.06 on February 6. This stock has risen 25 percent in the last 6 months. Shares of Uniparts India closed at Rs 486 on February 6 with a weakness of 1.33 per cent. This stock has jumped 42 percent in the last six months. Sona BLW shares fell 2.15 percent on February 6. It has increased by 14 percent in the last 6 months.