1 / 6Indian equities have shown resilience so far on the weekly options expiry session despite US President Donald Trump increasing the tariffs on India to 50% from 25% that he had announced last week. CNBC-TV18 spoke to a battery of experts on what should one do with their investments after the recent turn of events. Here’s a look at what they said:
2 / 6Pankaj Tibrewal of Ikigai Asset Management believes that no business is viable with a 25% to 50% tariff. He added that the banking stocks of India are likely to face one more challenging quarter before recovery begins in Q3. He prefers the financial sector, along with consumption-oriented stocks.
3 / 6Sridhar Sivaram of Enam Holdings said that this is not a good time for the markets and the earnings disappointments may continue for another 1-2 quarters. He also spoke about the Pharma sector, saying that the sector may stay out of the scope of tariffs.
4 / 6HSBC’s Herald Van Der Linde said that tariffs could become an excuse for Foreign Portfolio Investors (FPIs) to look away from India to other Asian Markets. However, he believes that at some point, the rally in South Korea and Taiwan may fizzle out and money may rotate out of these markets and move back to India.
5 / 6Arvind Sanger of Geosphere Capital management said that India needs to find a way to negotiate on the 25% base tariff and such a levy would put India at a disadvantage in terms of attracting Foreign Direct Investment (FDI).
6 / 6“The direct financial cost to India of replacing Russian Oil is less than 15 basis points of India’s GDP, and flattish Oil markets over past week imply good supplies exist. We believe the political fallout of US asks on dairy & agri still remain the key stumbling blocks to a deal. We remain hopeful of an eventual trade deal with the US,” Mahesh Nandurkar of Jefferies said.
