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Will India-US trade deal revive stalled IPO market momentum?
03 Feb 2026

The recent India-US trade deal has sparked hopes of a revival in the Initial Public Offering (IPO) market.

The agreement, which was announced by Prime Minister Narendra Modi and US President Donald Trump, has been viewed as a reduction in external risks and a sign of policy stability.

The Sensex opened trading on February 3 with up to 5% jump, following the announcement of the deal.

Axis Securities sees medium-term structural positive in trade deal
Market response

Axis Securities has said the trade deal improves earnings visibility, supports valuation re-rating for export-oriented and capex-linked sectors, and strengthens India's position as a safe haven among emerging markets.

The brokerage sees this agreement as a medium-term structural positive that could improve India's export competitiveness, deepen manufacturing capabilities, and strengthen global integration if execution remains consistent.

Sentiment shift from trade deal could impact IPO market
IPO prospects

The sentiment shift from the trade deal could impact the IPO market, which is sensitive to secondary market conditions, foreign investor participation, and valuation comfort.

After a strong September-to-December period with 54 IPOs raising over ₹1 lakh crore, January 2026 saw only three mainboard offers amid valuation fatigue and volatile global cues.

However, investment bankers are optimistic that this deal could revive stalled IPO plans if foreign institutional investors return in a significant way.

Export-oriented sectors likely to benefit from stock market's improved sentiment
Sectoral benefits

Axis Securities has said export-oriented sectors with high US exposure are likely to be the biggest beneficiaries of the stock market's improved sentiment.

Textiles, chemicals, pharmaceuticals, auto ancillaries, IT services and select industrial companies could benefit from better market access, tariff rationalization and greater supply-chain certainty.

Over time, higher order inflows and stronger earnings visibility in these sectors could support sustained growth and valuation re-rating.

Corporate India's response to the India-US trade deal
Business reactions

Corporate India has welcomed the India-US trade deal as a major step toward strengthening bilateral trade and investment ties amid global uncertainty.

Industry leaders believe that the reduction of US tariffs on Indian exports from 50% to 18% will improve competitiveness, predictability for businesses, and renew confidence in long-term investment decisions.

They see this agreement not just as near-term tariff relief but also as a broader signal of stability in India-US economic relations.