Stock market: What does Chinese FM Wang Yi's India visit before Trump-Zelensky meeting mean for Dalal Street? EXPLAINED
Indian stock market: After India’s NSA Ajit Doval met the Russian President ahead of the Trump-Putin meeting in Alaska, Chinese FM Wang Yi landed in India ahead of the Trump-Zelensky meeting on Monday. This chain of developments provides some cues for the Indian and global markets, and Dalal Street investors need to understand this in a broader perspective, especially when the deadline for 100% Trump’s tariffs on India ends on 27 August 2025.
According to stock market experts, Trump’s tariffs have brought India close to Russia and China, which suits the strong bonding of the BRICS countries. They said that Trump’s India tariff has a limited impact as it is just 2% of India’s GDP generated by US exports. They noted that warmth in New Delhi’s diplomatic ties with Moscow and Beijing is expected to catalyse India’s dependence on the US dollar. Experts maintained that Warmth in BRICS member nations and rising business activities may attract more non-NATO countries. They said the move may force the US president, Donald Trump, to soften his stand on tariffs imposed on India, as India is demonstrating its alternatives ahead of the 27 August 2025 deadline given by Donald Trump for raising the tariffs from 50% to 100%.
Emergence of BRICS as an alternative
On what this rising bonhomie in Russia-India-China means for the Indian stock market, Sandeep Pandey, Co-founder of Basav Capital, said, “The rising Russia-India-China bonhomie predates the BRICS (Brazil, Russia, India, China, South Africa) grouping, a strong global forum for its member countries to coordinate their positions on global and regional issues. India’s NSA visiting Russia ahead of Trump-Putin meeting and Chinese FM Wang Yi visiting India ahead of Trump-Zelensky meeting is a tactical pressure diplomacy that Russia, India and China have been playing in unison. The move is expected to negate any chances of a negative outcome for these nations from the Trump-Zelensky meeting, scheduled on Monday.”
Putting Trump under pressure
Speaking on Chinese FM Wang Yi’s India visit ahead of the Trump-Zelensky meeting, Sugandha Sachdeva, Founder of SS WealthStreet, said, “Chinese FM Wang Yi’s visit to India is positive for the markets and could lead the US to soften its stance on tariffs towards India and strengthening the Indian currency. The visit of China’s Foreign Minister to India and any signs of thawing relations could create new space for revitalising RIC. It refers to the Russia–India–China trilateral dialogue, a platform conceived in the late 1990s to promote multipolarity and cooperation among the three Eurasian powers. All three countries want to reduce dependence on the West and increase their influence in global governance bodies.”
Sugandha Sachdeva of SS WealthStreet said that by engaging in RIC, India can showcase its strategic autonomy and avoid being boxed into an exclusively pro-US alignment.
Change in bargaining power dynamics
Highlighting India’s ploy to enhance its bargaining capacity in the India-US trade deal and the Russian oil imports, Sugandha Sachdeva said, “India’s engagement with China signals that New Delhi is committed to pursuing a balanced foreign policy, preserving its strategic autonomy rather than being seen as fully aligned with Washington. Improved India–China engagement gives India bargaining power in its dealings with Washington.”
Eye on de-dollarisation
“After the outbreak of the Russia-Ukraine war, Indian and China have been buying Russian oil despite the US and European countries’ sanctions on Russia. Russian oil imports surged from 2.5% to 38% of India’s imports, with new payment systems bypassing the US dollar. Defence cooperation with Moscow persisted, while Prime Minister Modi prepared for his first visit to China since 2018. Experts warn these developments strengthen China-India ties at Washington’s expense,” said Gaurav Garg of Lemonn Markets Desk.
Freedom from Trump tariffs?
On whether Trump tariffs may continue to haunt the Indian stock market, Gaurav Garg said, “India’s economy proved more resistant than the Trump administration expected. Exports comprise just 20% of GDP, and the U.S. accounts for only 2% of India’s GDP, limiting tariff impact. While steel and aluminium exports suffered, IT services and pharmaceuticals, India’s largest export earners, were largely unaffected. Domestic institutional investors also helped steady markets after initial volatility.”
Trump Zelensky meeting time, other details
Ukrainian President Volodymyr Zelensky arrived in Washington, D.C., on Sunday, vowing his desire to end the Russia-Ukraine war “quickly and reliably. ” After the three-on-three ‘progress with no deal’ Trump-Putin meeting, the US president had summoned the Ukrainian President for a one-on-one meeting. The two leaders will be meeting at 10.45 PM IST on Monday at the White House.
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