IGI Logo

Below the Quote on Morning market 23 October 2025 from Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

Reports of an imminent trade deal between India and US is doing the rounds in market circles and the market reaction through Nifty implied open confirms this. 

Comments from President Trump and responses from PM Modi indicate an early trade deal. The expected deal involves some concessions from both sides. If the reported 15-16 % tariffs on Indian exports to US materialises that would be a big positive for Indian economy and major boost to stock markets. The market rally which has already begun in the festival season will accelerate enabling the Nifty to set new record highs. Unprecedented record sales during the last few days has the potential to improve corporate earnings. FIIs turning buyers recently and short covering are factors that can fuel the rally. Clearly, it is advantage bulls!

Short-covering has the potential to spike up large caps where there are big short positions. Textile stocks, which bore the brunt of the penal tariffs,  are likely to witness big buying.

Above views are of the author and not of the website kindly read disclaimer