Japan Elections: Takaichi's Landslide Victory to Reshape Global Markets

Sanae Takaichi’sLiberal Democratic Party won a decisive 328 of 465 seats on February 8,2026, triggering the”Takaichi Trade” as Japan abandons its tradition allow-interest-rate policy.

Her “Sanaenomics Reloaded” strategy emphasises aggressive fiscal stimulus, tax cuts, and substantial state funding for semiconductors, AI, and defence sectors.

Japanese markets are surging with the Nikkei reaching record highs, particularly benefiting defence, semiconductor, and robotics companies under the weak yen bias.

Indian equities stand to gain as Japanese capital pivots away from China under Takaichi’s” Economic Security” policy, with billions in FDI expected to flow into Indian infrastructure and technology sectors.

INDO-US TRADE DEAL– India Breaks Free from Trump’s Tariff  Wall

The US and India reached an interim trade agreement ending their ten-month tariff war, with the US reducing tariffs on Indian goods from 50% to 18% as of February 6, 2026.

India successfully protected sensitive agricultural sectors like dairy while committing to purchase $500 billion in US goods over five years, focusing on energy, aircraft, and defence technology.

The deal strategically integrates India into the US-led “Pax Silica” initiative for critical minerals and AI supply chains, positioning India as a counterweight to China in the Indo-Pacific.

Export-oriented sectors like textiles, auto components, and pharmaceuticals are expected to benefit significantly, with improved market sentiment likely to stabilise the Rupee and boost FDI inflows.

MPC Signals the End of Falling Rates

The Reserve Bank of India’s Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.25%, following cumulative rate cuts of 125 basis points in 2025, indicating that the easing cycle has concluded.

The MPC projects India’s GDP growth at 7.4% for FY26, supported by domestic consumption and investment, though future policy decisions will remain data-driven and dependent on inflation and growth trends.

Market Outlook

After one session of pause, Nifty resumed its uptrend, gaining 50 points to close at 25,693 on Friday.

The underlying trend of Nifty remains positive. A decisive move above 25,800 could bring bulls into action towards the upside target of 26,000 and the next 26,350 levels in the near term.

Source: HSL Prime Daily, 09 Feb 2026