India-Israel trade breakthrough, TASE falls despite rate cut | TV10 Daily
Re: November 25, 2025 in Israel - and what it all means for investors at home and abroad.
India trade breakthrough: India’s Commerce Minister Piyush Goyal, accompanied by 60 Indian companies, wrapped a historic official visit to Israel this week. The main highlight was the signing of the Terms of Reference for an India–Israel Free Trade Agreement. This is the precursor to formal negotiations between Israel and India, our second-largest Asian trade partner (currently ~$10.7B annually, though it has recently been affected by Houthi terror activity in the Red Sea).
Minister Goyal underscored:
India’s vast potential for Israeli innovators and businesses, particularly in technology, agritech, water tech, defence, science and technology, fintech, AI, quantum computing, pharmaceuticals and space.
The delegation also met leading Israeli companies Check Point (NASDAQ: CHKP), IDE Technologies, NTA, and Netafim, regarding partnerships.
Our take: A Free Trade Agreement, once signed, would lower India’s high tariffs (averaging 20%) and could double or triple Israel’s current ₪3B annual exports to India. Areas to watch could include cybersecurity, precision agriculture, desalination, wastewater management, as well as metro and urban mobility solutions.
A weaker day for the Tel Aviv Stock Exchange, which closed lower today (Wednesday) with the TA-35 slipping 0.8%, TA-90 down 0.2% and TA-125 falling by 0.6%. The insurance index dropped 4.2% led by Clal Insurance.
Market interpretation: Analysts viewed the 0.25% cut as “too little, too late,” suggesting the market had already priced in earlier easing. The muted reaction contrasts with Monday’s rally, when indices jumped 1.5%.
Insurance sector volatility: Clal Insurance (TASE:CLIS) led declines, dropping 4.1% in a “sell on the news” move after reporting strong Q3 results with double-digit growth. The stock had risen 4% the previous day. Libra Insurance (TASE:LBRA) surged 9% after beating expectations, while Direct Insurance (IDI) (TASE:IDIN) jumped after reporting 24% profit growth (excluding one-time provisions). Harel (TASE:HARL) also posted solid double-digit Q3 growth.
Cellcom’s dividend return: The telecom (TASE:CEL) announced it will resume dividend distributions (₪200M) after a 12-year hiatus, signaling sector stabilization following major reforms.
Our take today: The market’s negative reaction despite the rate cut signals skepticism about the pace of easing - what looks like a slow, gradual easing cycle. The insurance sector’s mixed reactions show investors are selective, rewarding companies that beat expectations (Libra, IDI) while taking profits on expected results (Clal). The India FTA could be significant for Israeli defense and tech exporters.
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Disclaimer: This brief is for informational purposes only and does not constitute investment advice. All data current as of the date and time of publication.
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