A possible trade deal between the United States and India could help lift investor sentiment and draw foreign portfolio investors (FPIs) back into Indian markets, according to Arvind Sanger, Managing Partner at Geosphere Capital Management. He said easing tensions between the two countries could remove a key overhang that has kept some investors cautious.“If there is some lessening of purchases by India, and that satisfies President Trump to be able to declare victory and sign off on a deal, I think the deal is probably more in President Trump’s court than in India’s,” Sanger told CNBC-TV18. He said such a move would “take India off the hot seat” and create room for fresh foreign inflows.
Among sectoral bets, Sanger sees promising opportunities in India’s auto ancillary sector, which benefits from both domestic demand and export potential. He explained that these companies have a dual opportunity because they cater to local consumption while also earning from global markets, making them attractive for medium- to long-term investors.
Sanger also highlighted selective value in banking and infrastructure stocks, particularly in segments linked to domestic consumption recovery such as steel, cement, and power.
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For the entire interview, watch the accompanying video
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