India-US Trade Deal: Jefferies Report Highlights, Adani Group Seen As Biggest Beneficiary

According to global brokerage firm Jefferies, the India-US trade deal could bring major benefits to several Indian companies and sectors. The deal is expected to play an important role in shaping the future direction of the Indian stock market.

Jefferies believes that this agreement will strongly support sectors like gems and jewellery, textiles, energy, auto components, solar manufacturing and chemicals.

Adani Group likely to gain the most

In its latest report, Jefferies said that the biggest beneficiary of the India-US trade deal could be the Adani Group.

Under this deal, tariffs on Indian exports to the US have been reduced from 50 per cent to 18 per cent. This makes Indian products cheaper and more competitive in the US market.

Jefferies pointed out that Adani Group companies already have a strong presence in the US. Because of this, they are well placed to directly benefit from higher exports and better trade opportunities.

Auto and solar sectors in focus

Apart from Adani Group, Jefferies also highlighted several other sectors that could see strong gains. In the auto ancillary sector, stocks like Sona BLW and Bharat Forge were named as potential winners.

In the solar manufacturing space, companies such as Waaree Energies, Premier Energies and Emmvee were seen as key beneficiaries. These companies could benefit from increased demand for clean energy products in the US.

Chemicals and textiles also expected to benefit

Jefferies also expects positive impact on chemical companies. It highlighted Navin Fluorine, PI Industries and SRF as stocks that may gain from the trade deal.

In the textile sector, Welspun Living was mentioned as a key stock. The company has strong exposure to overseas markets, especially the US, which puts it in a good position to benefit from lower tariffs.

Portfolio changes by Jefferies

In its India Strategy report, Jefferies also announced some changes in its investment portfolio. The brokerage added Eternal to its model portfolio and described it as a preferred stock for foreign investors.

It also increased exposure to the metals sector and reduced its allocation to IT stocks. This shows that Jefferies is shifting its focus towards sectors that could gain more from global trade and infrastructure growth.

What this means for investors?

Overall, Jefferies believes that the India-US trade deal is a positive step for Indian markets. Lower tariffs could boost exports, improve company earnings and attract more foreign investment.

Sectors with strong US exposure, especially energy, solar, auto components, chemicals and textiles, are expected to remain in focus in the coming months.

Disclaimer: The report reflects Jefferies’ views and market expectations, which are subject to change and may not predict actual outcomes; mention of companies does not constitute investment advice.