India can perform better in 2026, trade deal will change the market mood:The India-US trade deal could prove to be crucial for the Indian market, which has been experiencing significant turmoil for a long time.

News Topical, Digital Desk : The announcement of the India-US trade deal has once again sparked hope in the stock market. This move could prove crucial for the Indian market, which has been facing significant turmoil for a long time. The stock market has been under significant pressure due to Trump tariffs, geopolitical turmoil, and selling by foreign investors. Sandeep Tandon, founder of Quant Mutual Fund, believes this is not just news, but an "inflection point" for the market.

Hope will arise in the minds of investors

Speaking to Moneycontrol, Sandeep Tandon said that the market sentiment had become extremely negative over the past few months. Around the budget, investors began to feel that making money from the market was difficult. Markets typically reach their lowest levels in such circumstances. He explained that corporate earnings have been gradually improving on a quarterly basis since September, and now the benefits of GST will become more clearly visible. Consequently, the announcement of the trade deal has provided a slight boost to investor confidence. This is not the time to buy every stock. Sandeep Tandon clearly warned that blindly choosing any stock during this time could prove costly. He said that the era of easy profits is over. Global valuations are under pressure, and expensive stocks may see a decline. Therefore, the coming time will be for stock selection, not blind buying. According to Tandon, export-related sectors may see growth in the coming period. During this period, sectors such as auto components, textiles, gems and jewelry, and shrimp could benefit. Furthermore, the FMCG and auto sectors, which are linked to domestic consumption, could see improvements due to GST benefits. Furthermore, Tandon stated that the return of foreign investors will not be immediate, but the environment will gradually improve. He further stated that as uncertainty subsides, the "risk premium" on India will decrease, and this will be the first step toward investment return.

Large-cap stocks may also see a surge. Improved sentiment could lead to a significant recovery in major stocks like Reliance, Adani Group, and Grasim. Tandon believes this is not a time to become rich overnight, but rather to position oneself for the next market cycle.

India could perform better in 2026. Tandon believes that India has recently underperformed global markets, especially the US. This creates room for further improvement. He believes that India could emerge as an outperformer in 2026. This is not just due to a trade deal, but also due to improved earnings, improved manufacturing and growing export opportunities with the US and Europe.