India-US trade deal, July 3 -- A favourable India-US trade deal is one key factor that could trigger a breakout in the Indian stock market, potentially pushing the frontline indices to record highs.

India and the US are actively engaged in trade negotiations as the July 9 deadline looms. On July 1, US President Donald Trump said that a deal between the two countries could be announced soon. Yet, the deal remains elusive. Reports suggest that both countries are stuck on resolving key disagreements over US dairy and agricultural products.

In case of no trade deal before July 9, Indian exports to the US would face a total tariff of 36 per cent (10 per cent baseline tariffs + 26 per cent reciprocal tariffs), as Trump has indicated the deadl...