The Valuation of policy predictability an impact of bilateral and FTA between
countries and their influence on a country stock market: Case study of the
India-US Comprehensive Trade Agreement (2026) and the India-EU treaty
(2026) on the NSE

Bani Sethi

doi:10.46609/IJSSER.2026.v11i08.022

Title: The Valuation of policy predictability an impact of bilateral and FTA between countries and their influence on a country stock market: Case study of the India-US Comprehensive Trade Agreement (2026) and the India-EU treaty (2026) on the NSE
Authors: Bani Sethi
Journal: International Journal of Social Science and Economic Research (IJSSER) ISSN: 2455-8834 Volume: 11 Issue: 8 Publication Date: August 2026 DOI: 10.46609/IJSSER.2026.v11i08.022
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Bani Sethi The Ardee School
MLA 8 Sethi, Bani. "The Valuation of policy predictability an impact of bilateral and FTA between countries and their influence on a country stock market: Case study of the India-US Comprehensive Trade Agreement (2026) and the India-EU treaty (2026) on the NSE." Int. j. of Social Science and Economic Research, vol. 11, no. 8, Aug. 2026, pp. 3950-3961, doi.org/10.46609/IJSSER.2026.v11i08.022. Accessed Aug. 2026. APA 6 Sethi, B. (2026, August). The Valuation of policy predictability an impact of bilateral and FTA between countries and their influence on a country stock market: Case study of the India-US Comprehensive Trade Agreement (2026) and the India-EU treaty (2026) on the NSE. Int. j. of Social Science and Economic Research, 11(8), 3950-3961. Retrieved from https://doi.org/10.46609/IJSSER.2026.v11i08.022 Chicago Sethi, Bani. "The Valuation of policy predictability an impact of bilateral and FTA between countries and their influence on a country stock market: Case study of the India-US Comprehensive Trade Agreement (2026) and the India-EU treaty (2026) on the NSE." Int. j. of Social Science and Economic Research 11, no. 8 (August 2026), 3950-3961. Accessed August, 2026. https://doi.org/10.46609/IJSSER.2026.v11i08.022.
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ABSTRACT: This paper looks at how Free Trade Agreements (FTAs) and bilateral trade agreements can affect a country’s stock market. It mainly focuses on India and the recent trade developments with the US and the European Union, and their possible impact on the National Stock Exchange (NSE). It also focuses on policy predictability and includes stability of trade policies. However, it states reasons why an FTA alone may not be enough to improve trade or the economy. Political stability, government regulations, infrastructure and the strength of local industries also play an important role for the development. Previous research and historical trade agreements, including NAFTA, have been analysed to understand how trade agreements have affected countries in the past. It also looks at the Synthetic Control Method (SCM), which compares what happened after a trade agreement with what may have happened without it. Overall, the paper tries to understand whether stronger and more predictable trade relationships can affect stock market returns and volatility, and what this could mean for India and the NSE.

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