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As India moves closer to clinching a trade deal with the US, traders are trying to gauge the potential impact on companies that make everything from cholesterol-lowering generic drugs to bed linen sold in Walmart Inc’s mega stores.

Hopes for an early agreement brightened after US Vice President JD Vance said a trade deal with India will be “among” the first. Earlier, the White House said the two sides finalized the terms of reference for negotiations.

Optimism over trade has driven recent gains in Indian stocks and also lured foreign investors back to the South Asian nation. An influx of more than $1 billion in April has helped India’s equity market more than offset any negative impact from rising geopolitical tensions with Pakistan.

Even as specifics of India’s trade pact with the US and its impact on various industries are awaited, here are some of the sectors closely watched:

The Rupee

The rupee surged to its highest level in seven months on Friday, shrugging off the recent geopolitical tensions with neighboring Pakistan. The currency is among the best performers in Asia this week.

Trade-deal expectations, foreign inflows, manageable inflation and a more accommodative central bank have helped the rupee, said Michael Wan, senior currency analyst at MUFG Bank Ltd.

Drugmakers

Pharmaceuticals have been an area where the US policy is yet to be made formal. Investors were surprised when the sector wasn’t mentioned in the early tariff list only to be followed by comments from President Donald Trump that such action remains on the cards.

Top generic drug makers Sun Pharmaceutical Industries Ltd., Cipla Ltd., Dr. Reddy’s Laboratories Ltd. and Lupin Ltd. will be in focus.

Automotive Parts

The prospect of a 25% levy on auto parts threatens to hurt the industry already struggling with weak demand. While there has been some temporary relief given to automakers, a favorable deal will help Indian manufacturers gain market share due to relative advantage in comparison to other countries.

Stocks like Samvardhana Motherson International Ltd. and Sona BLW Precision Forgings Ltd. will be in focus.

Textiles and Apparel