Dixon, Aurobindo, Welspun Living, Avanti Feeds: Axis on India-US trade deal plays

Stocks such as Dr Reddy’s Laboratories Ltd, Lupin Ltd, Aurobindo Pharma Ltd, Aarti Industries Ltd, Pitti Engineering Ltd, Kirloskar Brothers Ltd, Welspun Living Ltd, Sanmar Engineering Ltd, Steel Strip Wheels Ltd, and information technology majors Infosys, HCL Tech and LTIMindtree are Axis Securities' top picks from its coverage universe to play the India-US trade deal.

From its non-coverage universe, the brokerage said Sun Pharma, Divi’s Laboratories, KPR Mill, Gokaldas Exports, Indo Count Industries, SRF Ltd, UPL Ltd, Bharat Forge, Samvardhana Motherson, Dixon Technologies (India) Ltd, Syrma SGS Technology, Sona BLW Precision Forgings, LT Foods and Avanti Feeds could also benefit from the deal.

Axis Securities said the US–India trade agreement is particularly positive for export-oriented sectors with meaningful exposure to the US market. It added that sectors such as textiles, chemicals, pharmaceuticals, auto ancillaries, information technology services and select industrials stand to benefit from improved market access, tariff rationalisation and greater supply-chain certainty.

“Over time, higher order inflows, better capacity utilisation and improved earnings visibility could support sustained growth and valuation re-rating for these sectors,” Axis Securities said.

Calling the deal a medium-term structural positive, the brokerage said sustained execution could meaningfully enhance India’s export competitiveness, manufacturing depth and global integration. It said investors should focus on companies with strong US exposure, scalable manufacturing capabilities, regulatory compliance strength and balance-sheet resilience to fully capture the opportunity.

“For equity markets, the deal enhances earnings visibility, supports valuation re-rating, particularly for export-oriented and capex-linked sectors, and reinforces India’s positioning as a relatively safe haven among emerging markets,” it said.

Axis Securities added that the deal aligns well with India’s manufacturing push under production-linked incentive schemes, export diversification strategy and ambition to move up the global value chain. For the US, India offers a large and reliable market, as well as a strategic manufacturing alternative in critical sectors, it said.