Prime Minister Narendra Modi finally ‘answered’ a phone call from US President Donald Trump on his 75th birthday, ending weeks of speculation about strained ties. Reports had earlier suggested that Modi had not taken Trump’s calls despite several attempts. This time, however, the two leaders spoke, with Trump confirming that he had a “good call” with Modi and wished him warmly on his birthday.
Trump thanked Modi for supporting global efforts to end the Russia-Ukraine war and praised his leadership, a statement widely seen as a thaw in recent tensions between New Delhi and Washington. Modi, in turn, appreciated Trump’s diplomatic efforts on the Ukraine crisis. Both sides also highlighted the resumption of India-US trade talks, a key development since Trump had earlier ruled out negotiations, accusing India of “fueling” Russia’s war. The US is simultaneously pushing forward with its trade negotiations with China, with Treasury Secretary Scott Bessant indicating that a deal could materialise by November.
Thank you, my friend, President Trump, for your phone call and warm greetings on my 75th birthday. Like you, I am also fully committed to taking the India-US Comprehensive and Global Partnership to new heights. We support your initiatives towards a peaceful resolution of the…
— Narendra Modi (@narendramodi) September 16, 2025
Trump on corporate reporting and rate policy
In other remarks, Trump urged companies listed on the stock market to end the practice of publishing quarterly operating results. He argued that reporting every three months is a bad habit that forces short-term thinking, and suggested firms should release results only every six months. According to him, this would save costs and encourage employees to focus on long-term goals. The proposal would impact companies in the US as well as India, where the quarterly system is also followed.
Meanwhile, the US Federal Reserve is scheduled to announce its latest monetary policy later today. Analysts expect a 0.25% cut in the base interest rate. Despite rising inflation, a steep decline in employment has strengthened the case for a rate reduction.
Dollar weakens, gold and Rupee shines
Expectations of a cut triggered sharp movements in currency and commodity markets. The dollar and US bond yields fell as investors anticipated cheaper borrowing costs. The US dollar index, measured against six major currencies including the euro, yen, and pound, plunged to a two-and-a-half-month low of 96.60. The 10-year US Treasury yield dropped to 4.02% from 4.6% a week ago.
Lower yields have made the dollar and bonds less attractive, fuelling a rally in gold. International gold prices surged close to the $3,700 per ounce milestone. Prices hit $3,695.20 before easing to $3,678.60 on profit-taking. The Indian rupee also strengthened, gaining 8 paise to close at 88.08 against the dollar yesterday, reflecting optimism over foreign inflows and the easing greenback.
Stocks fluctuate globally, India Rising
Despite strong expectations of a rate cut, US and Asian equities showed mixed trends. Investors remained cautious about the Fed’s forward guidance for coming months. In the US, the S&P 500 slipped 0.13%, the Nasdaq edged down 0.07%, and the Dow Jones fell 0.27%. In Japan, exports contracted by only 0.1% in August, far better than the 1.9% fall forecast by observers, helping the Nikkei index rise 0.17%. In China, the Shanghai Composite fell 0.05%, while Hong Kong’s Hang Seng gained 0.71%.
India’s stock markets, however, bucked the global trend. The Sensex jumped 595 points (+0.73%) to close at 82,380, while the Nifty gained 170 points (+0.68%) to settle at 25,290. The momentum continued into the morning, with the GIFT Nifty rising 56 points (+0.22%), signalling further strength. Analysts attribute the rally to renewed optimism over India-US trade talks, the prospect of a Fed rate cut, and strong domestic demand.
Several corporate updates also boosted investor sentiment. Jindal Steel announced plans to acquire the European operations of Germany’s Thyssenkrupp Steel, a major move that could expand its global footprint. Kerala-based Apollo Tyres secured a three-year sponsorship deal for the Indian cricket team, replacing Dream11. Life Insurance Corporation (LIC) increased its stake in Tech Mahindra by 2.004%, taking its total holding to 10.84%. Meanwhile, the sharp rally in gold prices has driven up shares of gold loan companies. With consumer demand for gold loans rising rapidly, lenders are seeing significant business growth.
With Modi and Trump reopening dialogue, the India-US relationship appears set on a positive trajectory. The resumption of trade talks offers a crucial window for New Delhi to expand its economic engagement with Washington, while global markets brace for the Fed’s interest rate decision. For India, the twin support of improved foreign relations and buoyant domestic equities could mark the start of a stronger economic phase.
