HAL, Azad Engineering among others gain up to 5% on US–India trade framework

Shares rise in trade.

• Aerospace-linked stocks rose after India-US interim trade framework announcement.
• US to cut tariffs on Indian goods to 18 percent, boosting aerospace cooperation.
• Framework ends tariff dispute and focuses on energy, aircraft, and defence tech.

Did our AI summary help?

Shares of aerospace-linked firms rose by up to 9 percent on Monday after India and the US announced an interim trade framework aimed at easing tariff barriers and boosting bilateral cooperation.

Hindustan Aeronautics Ltd (HAL) shares rose over 1 percent to Rs 4,125.20 per share on the NSE, while Azad Engineering climbed more than 5 percent to Rs 1,569.60.

Dynamatic Technologies gained over 9 percent to Rs 9,335, while Aequs advanced nearly 3 percent to Rs 144.39 on the NSE.

The buying interest followed the announcement of an interim trade framework between India and the US, which is expected to benefit US aerospace original equipment manufacturers and their Indian supply chain partners.

According to ICICI Direct Research, the interim trade framework is a positive development for the Indian aerospace industry and could improve cost competitiveness across the supply chain.

Under the framework, the US will reduce reciprocal tariffs on Indian goods to 18 percent from 25 percent. Washington has already withdrawn the additional 25 percent punitive tariff imposed earlier on India over its purchase of Russian crude.

The broader markets also responded positively after the two countries announced the framework on Friday, which focuses on lowering tariffs, strengthening energy ties and deepening economic cooperation.

Devarsh Vakil, Head of Prime Research at HDFC Securities, said India and the US have reached an interim trade agreement ending a ten-month tariff dispute, with the US agreeing to reduce tariffs on Indian goods. He added that India has safeguarded sensitive agricultural sectors while committing to purchase goods from the US over the next five years, with a focus on energy, aircraft and defence technology.

(With Inputs from Reuters)

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.