The Sensex surged 595 points to close at 84,466, while the Nifty advanced 180 points to end at 25,875. (Representational Image)

A wave of optimism swept through Dalal Street on Wednesday after reports of progress on the long-anticipated India-US trade agreement. Investor sentiment turned buoyant, lifting benchmark indices sharply higher. The Sensex surged 595 points to close at 84,466, while the Nifty advanced 180 points to end at 25,875.

Analysts believe the proposed trade deal could give equities a fresh leg of strength, particularly if tariff disputes are eased. Some sectors may benefit directly from reduced import duties, while others could rise on the back of improved investor confidence and export potential.

According to Refinitiv’s Stock Report Plus, several midcap companies stand out for their potential to deliver substantial returns, with analysts projecting gains of at least 25% and assigning them “Buy” or “Strong Buy” ratings. These companies, with market capitalisations ranging from Rs 5,000 crore to Rs 25,000 crore, are expected to gain from the trade deal’s ripple effects.

Top Analyst Picks

1. Godrej Agrovet Limited leads the list with a projected upside of up to 42%. The agribusiness major, valued at Rs 11,064 crore, operates across animal feed, crop protection, palm oil, poultry, and dairy. Analysts expect the easing of trade barriers to significantly benefit agricultural exports. The company’s diverse subsidiaries including Godvet Agrochem, Astec Lifesciences, Creamline Dairy Products, and Godrej Tyson Foods further reinforce its market position.

2. Mahindra Lifespace Developers Limited, with a market capitalisation of Rs 8,280 crore, has earned a “Strong Buy” recommendation and a 38% upside forecast. The firm develops both premium and affordable housing, along with integrated cities. Lower manufacturing tariffs, analysts say, could spur real estate growth and housing demand.

3. Kirloskar Ferrous Industries Limited, a key supplier of pig iron and grey iron castings to the automotive and machinery sectors, has been assigned a “Strong Buy” rating with a 37% potential upside. Analysts note that cheaper steel imports following the trade deal could enhance profitability across the metals industry.

4. Aether Industries Limited, a specialty chemicals manufacturer focused on advanced intermediates and contract research, carries a “Buy” rating with an expected 36% rise. With a market cap of Rs 9,854 crore, its strong R&D infrastructure and custom manufacturing services position it well to benefit from global supply chain shifts.

5. Jubilant Ingrevia Limited, engaged in life sciences and nutrition-based products, has been given a “Buy” rating and could see up to 35% appreciation. The company’s market capitalisation stands at Rs 10,716 crore.

6. Crompton Greaves Consumer Electricals Limited, a household name in fans, pumps, lighting, and air coolers, also features on the list with a “Buy” rating and 35% upside potential. The company is valued at Rs18,113 crore and is expected to gain from improved consumer demand amid economic recovery.

7. Sanofi India Limited, known for its portfolio in pharmaceuticals and vaccines, particularly for diabetes and cardiovascular care, has been rated a “Buy” with a 29% upside forecast. The company’s market cap currently stands at Rs 10,586 crore.

All seven companies fall within the midcap bracket and are poised to gain directly or indirectly from the India-US trade accord. Analysts suggest that the removal of tariffs could lower input costs and bolster export competitiveness across multiple sectors.

However, experts caution investors to remain prudent. While optimism around the trade deal has lifted markets, individual stock performance may vary based on global developments and policy execution.

Disclaimer: This report is for informational purposes only. Investors are advised to consult certified financial advisors before making investment decisions. News18 bears no responsibility for any financial gain or loss arising from actions taken based on this report.