Key points:
Mugunthan Siva talks US-India trade talks & $120bn UK deal.
Positive Indian economic signs: low inflation, tax cuts, urban consumption rise.
Optimistic tech sector outlook amid AI focus; India’s growth potential emphasised.
Mugunthan Siva from India Avenue Investment shares that trade talks between the US and India are constructive, although timelines remain uncertain. Narendra Modi’s visit to the US and JD Vance’s trip to India highlight improving relations. India also strikes a $120 billion trade deal with the UK.
Mugunthan notes that the Indian economy is showing positive signs, with inflation at a low point and potential cash rate reductions. Upcoming personal tax cuts and promising monsoon forecasts could boost urban consumption, benefiting the restaurant, banking, and non-bank financial sectors.
In the tech sector, Mugunthan observes slowed deal activity and underperforming stocks. However, optimism grows for AI integration and digital platforms. As markets recover selectively, focus shifts to companies sustaining earnings growth. India’s economic message emphasises significant growth potential amid global challenges.
