Indian equity markets advanced following the announcement of the finalisation of a trade agreement between India and the United States. Shares of companies linked to global trade, infrastructure, energy, ports, and logistics recorded gains, with Adani Group stocks posting notable increases.
The benchmark indices moved higher after the announcement. During intraday trade, the Nifty rose by about 5 percent to 26,341 points, while the Sensex gained more than 4,200 points, marking its largest intraday rise since February 2021.
After the initial surge, some profit-taking was observed, and the market stabilised during the morning session. Despite this, buying interest remained in several stocks.
Shares of Adani Enterprises rose by nearly 12 percent during the session, marking the largest single-day rise since November 2024. Adani Ports gained about 8 percent. Adani Green Energy advanced nearly 12.7 percent, Adani Energy Solutions closed about 10 percent higher, and Adani Power recorded gains of around 7.8 percent.
Under the trade agreement, tariffs imposed by the United States on Indian products have been reduced from 25 percent to 18 percent. In addition, the decision includes the removal of additional taxes imposed on purchases of crude oil from Russia.
The changes are expected to reduce costs for Indian companies and improve the competitiveness of their products in the US market. Companies with exposure to global supply chains, energy, and logistics are among those impacted.
A significant portion of Adani Group’s operations is linked to the energy sector, including coal, renewable energy, power transmission, and gas. The easing of tax burdens related to crude oil and energy is expected to lower operating costs for companies in these segments.
Adani Ports, one of India’s largest port operators, is positioned to benefit from increased export and import activity associated with higher trade volumes between India and the United States. Growth in trade volumes is expected to affect ports, warehousing, and logistics activities.
According to media reports, three Adani Group companies are working on plans to raise about $2 billion from Japan. The company has described this as part of its routine business process.
Japan Credit Rating Agency has assigned long-term foreign currency credit ratings to three Adani Group companies, including Adani Ports, Adani Green, and Adani Energy Solutions, indicating an assessment of their financial profile at the international level.
