Trump-Zelensky meeting: How will the Indian stock market open on Monday? Explained with 5 key takeaways | Stock Market News

Trump-Zelensky meeting: After the bloodbath in the Indian stock market on Friday, retail investors eagerly awaited the Trump-Zelensky meeting outcome, which was expected to give a road map to end the geopolitical tension caused by the Russia-Ukraine war. However, after the explosive Trump-Zelensky meeting, Indian stock market observers may have to worry more as the US administration’s standing with Russia is detrimental to the geopolitical peace and Indian business of the European countries.

According to stock market experts, the Trump-Zelensky meeting may give fresh tension to the North Block as the Russia-Ukraine war had allowed India to buy crude oil from Russia at cheaper rates and export it to European countries. As Donald Trump has backed out from the Russia-Ukraine war by extending full support to the Russian government, this new avenue for revenue for India is expected to dry down soon. They also anticipated pressure on India’s bargaining ability in defence deals as US-Russia amity would hit New Delhi’s bargaining ability while sealing a defence deal with Russia, the US or any European country. They said that the Trump-Zelensky meeting outcome is more detrimental to the divergent Indian stock market than Donald Trump’s tariff flair.

Trump-Zelensky meeting: 5 key takeaways for D-street

When asked about the five key takeaways for the Indian stock market from the Trump-Zelensky meeting, stock market experts listed these five outcomes: geopolitical tension, a hit on Indian exports, pressure on the Indian National Rupee (INR), intensified FIIs’ selling, and inflation concern.

1] Geopolitical tension: “Trump-Zelensky meeting outcome is disappointing for India as the US government has left Ukraine on its mercy as they did with Taiwan, Afghanistan, Iraq, etc. After lending full support to the Zelensky government after Russia invaded Ukraine, Donald Trump has taken almost a U-turn, which is fueling the geopolitical tension. So, the global market sentiment has gone weak after this outcome from the Trump-Zelensky meeting, and it will hurt the Indian stock market when it reopens on Monday,” said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.

2] Hit on Indian exports: “In the wake of the Russia-Ukraine war and sanctions imposed by the US and the European countries on Russia, India had become an oil exporter to the European countries. New Delhi bought oil from Russia at a discounted price and exported it to the European countries. Now, after this Trump-Zelensky meeting, European countries may also back out from the Russia-Ukraine war and lift Russian sanctions. So, the market is expected to offer a discount on this matter when the Indian stock market resumes trade on Monday,” said Anshul Jain of Lakshmishree Investment and Securities.

“If European countries extend solidarity with Ukraine, Donald Trump may force them to follow suit with a reprimand to leave NATO,” Anshul Jain said.

3] Pressure on the Indian Rupee: “This Trump-Zelensky meeting outcome is good for the US, and hence, the US dollar is expected to gain further, which will put extra pressure on the Indian rupee,” said Avinash Gorakshkar, Head of Research at Profitmart Securities.

4] Inflation concern: “Trump-Zelensky meeting outcome is expected to fuel fresh geopolitical tension in the Middle East, China-Taiwan, North Korea-South Korea, etc. So, crude oil prices are expected to rise under the renewed fear of geopolitical tension. This will fuel Indian inflation as it meets around 85 per cent of its oil demand through imports,” said Avinash Gorakshkar of Profitmart Securities.

5] FIIs’ selling: “After the Trump-Zelensky meeting, FIIs’ selling is expected to intensify further when the Indian stock market opens on Monday. FIIs had around 1.99 lakh short contract in the recently ended February series expiry, which almost rolled over to March. After Friday’s session last week, FIIs’ short position in the March series is 1.73 lakh contracts, which won’t be covered after this disappointing Trump-Zelensky meeting. So, chances of recovery in the divergent Indian stock market has become grim after the Trump-Zelensky meeting,” said Anshul Jain.

Stock market outlook

“The Nifty 50 index has broken its crucial support at 23,200, and the 50-stock index has the next vital support in the range of 22,250 to 22,200. The frontline index may touch these levels in the next month,” said Anshul Jain.

On Friday, a meeting in the Oval Office that started out with cordialities turned heated at the end. Vice President JD Vance told Zelenskyy to show more gratitude toward Trump before the president himself began shouting.

“You’re gambling with the lives of millions of people,” Trump berated Zelenskyy. “You’re gambling with World War III.”

With that, Trump scrapped plans to sign an agreement that would have allowed the US to access Ukraine’s rare earth minerals, a deal the US president had said would have helped move the war toward a conclusion. The blowup cast new doubt on the future of US support for Kyiv in fending off Russia’s invasion.

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