Latest news with #USIndia
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Business Standard
3 days ago
- Business
- Business Standard
Trade moves, inflation data, FII flows likely to drive markets this week
Stock markets will be driven by inflation data, trade-related news, earnings and trading activity of foreign investors in a holiday-shortened week, analysts said on Sunday. Global market trends will also influence trading sentiment this week, they added. Equity markets would remain closed on Friday for Independence Day. "This week, attention will turn to domestic CPI and WPI inflation data. Developments in the USIndia trade relations will also remain in focus amid ongoing discussions over a trade agreement. The earnings season is nearing its end, with key results due from Ashok Leyland, ONGC, IOC, Hindalco Industries, BPCL and others, which could drive stock-specific action," Ajit Mishra SVP, Research, Religare Broking Ltd, said. Extending losing streak for the sixth consecutive week, the BSE benchmark dropped 742.12 points or 0.92 per cent, and the Nifty declined 202.05 points or 0.82 per cent. "Key factors to watch this week are trade negotiations, macroeconomic data, earnings and FII flows," Santosh Meena, Head of Research, Swastika Investmart, said. Any updates or posturing from India and the US will remain a primary market driver, he said. "India, the US, and China will release key numbers, with US inflation data (12th August) being especially crucial in the backdrop of higher tariffs. India's inflation numbers will also be released on the same day," Meena noted. The Q1 earnings season is nearly over, but a few companies are yet to announce results, potentially triggering sector-specific moves, he said. Foreign investors have pulled out nearly Rs 18,000 crore from Indian equities so far this month. "Looking ahead, markets will enter the final leg of the Q1 earnings season, which is expected to drive stock-specific moves. Overall, we expect equities to remain in consolidation mode until there is clarity on the tariff front. In this volatile environment, investors may focus on domestic-oriented themes, while traders are advised to keep positions light," Siddhartha Khemka - Head Of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.
Arab News
5 days ago
- Business
- Arab News
Pakistan says US doubling tariffs on India presents ‘strategic opening'
KARACHI: US President Donald Trump's move to double tariffs on Indian goods presents a 'strategic opening' for Islamabad to deepen its trade partnership with Washington, Pakistan's finance adviser Khurram Schehzad said on Thursday. Trump signed an executive order on Wednesday to place an additional 25 percent tariff on India on top of a 25 percent tariff that went into effect on Thursday. The move made India one of the most heavily taxed US trading partners in Asia. Pakistan, India's traditional arch-rival, has meanwhile improved its ties with Washington. Pakistan and the US finalized a trade agreement last week under which a 19 percent tariff was imposed on a wide range of Pakistani goods. The new rate marked a considerable reduction from the initially proposed 29 percent under a sweeping executive order signed by Trump. 'The US tariff hike on Indian goods presents a strategic opening for Pakistan,' Schehzad told Arab News. Washington's 19 percent tariff on Pakistani goods makes them less expensive than Indian goods, making Pakistan one of the countries with the lowest tariff profiles in the region. 'We see this as a moment of opportunity to deepen trade and economic ties with the United States,' the finance official added. The US is Pakistan's largest export destination, State Minister for Finance Bilal Azhar Kayani said on Thursday. He added that out of $32 billion of Pakistan's exports in the last fiscal year, $6 billion went to the US. Pakistan's tariff deal with the US took place at a time when Islamabad is pushing for an economic revival, buoyed by a $7 billion financial bailout package by the International Monetary Fund (IMF). Pakistan has undertaken financial reforms over the past two years. Prime Minister Shehbaz Sharif has tasked authorities to ensure Islamabad's $32 billion annual exports surge to over $60 billion by fiscal year 2028-29. Pakistan, having one of the lowest regional tariff profiles and also attracting a growing US investment interest, is positioned to expand its exports, particularly in textiles, pharmaceuticals, agriculture, technology, mining & minerals, and other value-added manufacturing, Schehzad said. 'This agreement will help us realize the long-term export targets we have set under Uraan Pakistan program,' he said, referring to the government's economic plan that aims to make Pakistan a trillion-dollar economy by 2035. 'MAJOR OBSTACLES' Pakistani businesspersons, especially those related to textiles, think otherwise. Atif Ikram Sheikh, president of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), said the US has imposed the lowest trade tariffs in the region on Pakistan, which Islamabad should take full advantage of. However, he said higher production costs in Pakistan could neutralize this benefit. 'Taxes and high electricity and gas prices for the industry are major obstacles to taking advantage of low tariffs,' Sheikh said. The textile industry is Pakistan's biggest foreign exchange earner, fetching $18 billion during the last fiscal year, most of which came from the US. Kamran Arshad, chairman of the All Pakistan Textile Mills Association (APTMA), was also unsure whether the new trade agreement with the US would benefit Pakistan significantly. 'The costly power and high interest rates would not allow us to compete (in the global textile market) at this 19 percent tariff,' Arshad told Arab News. Last week, Pakistan's central bank kept the policy rate unchanged at 11 percent, adopting a cautious approach. According to the APTMA, Pakistan has a higher interest rate of 11 percent, compared to India's 5.5 percent, Bangladesh's 10 percent, Vietnam's 4.5 percent, Sri Lanka's 7.75 percent, Indonesia's 5.25 percent and Cambodia's 3 percent. The power tariff for industries in Pakistan, meanwhile, stands at $0.16 kilowatt per hour as compared to $0.096 in India, $0.10 in Bangladesh, $0.08 in Vietnam, $0.06 in Sri Lanka, $0.07 in Indonesia and $0.135 in Cambodia, the data shows. Pakistani businesses are paying 29 percent corporate income tax and as much as 10 percent super tax compared to the 27.5 percent preferential taxes their competitors from India, Bangladesh, Vietnam, Sri Lanka, Indonesia and Cambodia are paying on incomes. 'Pakistan's corporate tax, policy rate, labor costs, electricity rate put us at a disadvantage with India, Bangladesh, Vietnam, Sri Lanka and Indonesia,' Arshad noted. Shankar Talreja, head of research at Karachi-based brokerage firm Topline Securities, said the US is a 'big market' for pharmaceuticals, textiles and food products. 'If Pakistan gets preferential treatment in the US market, this will help our companies grow further,' he said.
Arab News
5 days ago
- Business
- Arab News
Pakistan says US doubling tariffs on India presents ‘strategic opening' for Islamabad
KARACHI: US President Donald Trump's move to double tariffs on Indian goods presents a 'strategic opening' for Islamabad to deepen its trade partnership with Washington, Pakistan's finance adviser Khurram Schehzad said on Thursday. Trump signed an executive order on Wednesday to place an additional 25 percent tariff on India on top of a 25 percent tariff that went into effect on Thursday. The move made India one of the most heavily taxed US trading partners in Asia. Pakistan, India's traditional arch-rival, has meanwhile improved its ties with Washington. Pakistan and the US finalized a trade agreement last week under which a 19 percent tariff was imposed on a wide range of Pakistani goods. The new rate marked a considerable reduction from the initially proposed 29 percent under a sweeping executive order signed by Trump. 'The US tariff hike on Indian goods presents a strategic opening for Pakistan,' Schehzad told Arab News. Washington's 19 percent tariff on Pakistani goods makes them less expensive than Indian goods, making Pakistan one of the countries with the lowest tariff profiles in the region. 'We see this as a moment of opportunity to deepen trade and economic ties with the United States,' the finance official added. The US is Pakistan's largest export destination, State Minister for Finance Bilal Azhar Kayani said on Thursday. He added that out of $32 billion of Pakistan's exports in the last fiscal year, $6 billion went to the US. Pakistan's tariff deal with the US took place at a time when Islamabad is pushing for an economic revival, buoyed by a $7 billion financial bailout package by the International Monetary Fund (IMF). Pakistan has undertaken financial reforms over the past two years. Prime Minister Shehbaz Sharif has tasked authorities to ensure Islamabad's $32 billion annual exports surge to over $60 billion by fiscal year 2028-29. Pakistan, having one of the lowest regional tariff profiles and also attracting a growing US investment interest, is positioned to expand its exports, particularly in textiles, pharmaceuticals, agriculture, technology, mining & minerals, and other value-added manufacturing, Schehzad said. 'This agreement will help us realize the long-term export targets we have set under Uraan Pakistan program,' he said, referring to the government's economic plan that aims to make Pakistan a trillion-dollar economy by 2035. 'MAJOR OBSTACLES' Pakistani businesspersons, especially those related to textiles, think otherwise. Atif Ikram Sheikh, president of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), said the US has imposed the lowest trade tariffs in the region on Pakistan, which Islamabad should take full advantage of. However, he said higher production costs in Pakistan could neutralize this benefit. 'Taxes and high electricity and gas prices for the industry are major obstacles to taking advantage of low tariffs,' Sheikh said. The textile industry is Pakistan's biggest foreign exchange earner, fetching $18 billion during the last fiscal year, most of which came from the US. Kamran Arshad, chairman of the All Pakistan Textile Mills Association (APTMA), was also unsure whether the new trade agreement with the US would benefit Pakistan significantly. 'The costly power and high interest rates would not allow us to compete (in the global textile market) at this 19 percent tariff,' Arshad told Arab News. Last week, Pakistan's central bank kept the policy rate unchanged at 11 percent, adopting a cautious approach. According to the APTMA, Pakistan has a higher interest rate of 11 percent, compared to India's 5.5 percent, Bangladesh's 10 percent, Vietnam's 4.5 percent, Sri Lanka's 7.75 percent, Indonesia's 5.25 percent and Cambodia's 3 percent. The power tariff for industries in Pakistan, meanwhile, stands at $0.16 kilowatt per hour as compared to $0.096 in India, $0.10 in Bangladesh, $0.08 in Vietnam, $0.06 in Sri Lanka, $0.07 in Indonesia and $0.135 in Cambodia, the data shows. Pakistani businesses are paying 29 percent corporate income tax and as much as 10 percent super tax compared to the 27.5 percent preferential taxes their competitors from India, Bangladesh, Vietnam, Sri Lanka, Indonesia and Cambodia are paying on incomes. 'Pakistan's corporate tax, policy rate, labor costs, electricity rate put us at a disadvantage with India, Bangladesh, Vietnam, Sri Lanka and Indonesia,' Arshad noted. Shankar Talreja, head of research at Karachi-based brokerage firm Topline Securities, said the US is a 'big market' for pharmaceuticals, textiles and food products. 'If Pakistan gets preferential treatment in the US market, this will help our companies grow further,' he said.
Bloomberg
6 days ago
- Business
- Bloomberg
Bloomberg Daybreak Asia: Reciprocal Tariffs to Take Effect, Trump Threatens Chip Levies
After months of negotiations, US reciprocal tariffs are set to go into effect at 12:01am Eastern time. On Wednesday, President Donald Trump imposed an additional 25% tariff on Indian goods over its ongoing purchases of Russian energy, escalating a fight with a key Asian partner on the eve of his broad-based duties taking effect. Meantime, Switzerland's president Karin Keller-Sutter left Washington without announcing any success in lowering the 39% tariff on her country - the highest American tariff rate of any developed nation. For more, we heard from William Reinsch, Senior Adviser at the Center for Strategic and International Studies. He speaks with Bloomberg's Haidi Stroud-Watts and Haslinda Amin on The Asia Trade. Plus - President Trump said he would impose a 100% tariff on semiconductor imports, though would exempt companies moving production back to the United States. The announcement came as Apple CEO Tim Cook joined the President at the White House to announce a fresh $100 billion investment plan in US manufacturing. We get reaction from Emily Benson, Head of Strategy at Minerva Technology Futures.
CNA
01-07-2025
- Business
- CNA
US Treasury Secretary Bessent says India trade deal is very close
WASHINGTON: The US and India are nearing a deal to lower tariffs on American imports to the South Asian country and to help India avoid levies imposed by the Trump administration from rising sharply next week, Treasury Secretary Scott Bessent said on Tuesday (July 1). "We are very close with India," Bessent told Fox News in response to a question about progress on trade negotiations. Indian officials have extended a visit to Washington from last week through to Monday next week to try and reach a trade deal with President Donald Trump's administration and address lingering concerns on both sides, Indian government sources told Reuters. India is one of more than a dozen countries actively negotiating with the Trump administration to try to avoid a steep spike in tariff rates on July 9, when a 90-day tariff pause ends. India could see its new "reciprocal" tariff rate rise to 27 per cent from the current 10 per cent. The US-India talks have hit roadblocks over disagreements on import duties for auto components, steel, and farm goods, ahead of Trump's deadline to impose reciprocal tariffs. "We are in the middle - hopefully more than the middle - of a very intricate trade negotiation," Indian Foreign Minister Subrahmanyam Jaishankar told an event in New York on Monday. "Obviously, my hope would be that we bring it to a successful conclusion. I cannot guarantee it, because there's another party to that discussion," said Jaishankar, who is in the US for a meeting of the Quad security grouping that also includes Australia and Japan. He added that there "will have to be give and take" and the two sides will have to find middle ground. Bessent told Fox News that different countries have different agendas for trade deals, including Japan, which Trump complained about on Monday. But Bessent added that career trade negotiators are impressed with the offers that countries are making to the US. "People who have been at Treasury, at Commerce, at USTR for 20 years, are saying that these are deals that they have never seen before," Bessent said. So far, only Britain has negotiated a limited trade deal with the Trump administration, accepting a 10 per cent US tariff on many goods, including autos, in exchange for special access for aircraft engines and British beef.
