While the devil is in the details, it removes a hanging sword over rupee, equity and rates market: Kotak AMC's Nilesh Shah

Nilesh Shah

India and the United States have reached a major trade agreement after a prolonged phase of negotiations marked by uncertainty and frequent twists and turns, Kotak AMC's Nilesh Shah said. The deal, announced by US President Donald Trump in a late night post on Truth Social, includes a reduction in reciprocal tariffs to 18 per cent, a key step that eases trade-related tensions between the two countries.

Reacting to the development, Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, said the agreement, despite pending finer details, has brought much-needed relief to financial markets. “While the devil is in the details, it removes a hanging sword over rupee, equity and rates market,” Shah said, highlighting the importance of resolving trade uncertainty for investor confidence.

He added that the agreement holds the potential to benefit both economies if implemented constructively. “Let us hope that it is a win-win deal for both the countries as they have a lot to gain through cooperation,” Shah said.

The trade deal is expected to help stabilise sentiment across currency, equity and bond markets, which had been cautious amid concerns over escalating tariffs and strained trade relations between India and the US.