A recent conversation between Prime Minister Narendra Modi and US President Donald Trump has hoped to open new avenues of negotiations between the two countries. Experts say that the stock market is also looking at this conversation from a positive perspective. However, he also said that unless there is no concrete trade agreement between the two countries, investors will remain cautious.
Pankaj Tibrewal, founder and Chief Investment Officer of Eykigai Asset Management, told CNBC-TV18 that this conversation is a welcome step and this could strengthen the stock market sentiment. However, until a trade agreement between the two countries is revealed, the attitude of investors can remain cautious.
He said, “The stock markets are confused at the moment, as some new comments are coming every day. Yesterday, we saw some statements about the ban on outsourcing, and some time later Trump’s positive comments came. So it is a welcome step, but we have to see it very carefully till the signing of the trade bill again.”
In fact, US President Trump recently posted a social media, describing the Indo-US relations as “special”. In this post, Trump also said that he with Prime Minister Modi “will always maintain friendship.” A few hours later, PM Modi welcomed Trump’s talk and described it as a wider and visionary.
This conversation is being considered a sign of a change after weeks of tariffs and trade between India and America for weeks. Diplomats and foreign policy experts also expressed a similar opinion, but also warned to avoid extreme meaning from just one conversation.
Former Ambassador Venu Rajamani said that messages from both sides are positive, but Trump’s statements are quite uncertain. In such a situation, India will have to be cautious. He added, “President Trump remains extremely unexpected and somewhat incredible, so we do not know what will happen for us in future.”
Similarly, Harsh V Pant of the Observer Research Foundation said that India has deliberately taken a balanced stance in the last few months, but strategic results may be affected if Trump’s megaphone diplomacy and public pressure strategy continues.
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