Quote on Trump's Tariff impact on markets from Vaibhav Porwal, Co-Founder, Dezerv
Below the Quote on Trump's Tariff impact on markets from Vaibhav Porwal, Co-Founder, Dezerv
“Domestic demand-oriented sectors are the most attractive investment opportunities in the current tariff environment. Cement, building materials, banks, and FMCG companies stand to outperform as they rely primarily on domestic consumption rather than international trade. Companies benefiting from government capital expenditure projects and those serving non-discretionary consumer needs are also well-positioned. These sectors derive their strength from India's internal economic dynamics and are relatively insulated from global trade tensions. Export-driven sectors like Information Technology and auto components face significant challenges as they are directly exposed to tariff impacts and broader global trade friction. In this market environment, gains will likely be concentrated in select stocks rather than broadly distributed, making careful stock selection and active management strategies more effective than passive approaches.
While tariffs will create near-term market volatility, they are unlikely to significantly derail India's economic revival. The Indian economy's fundamental strength comes from its consumption-driven nature and relatively stable macroeconomic indicators. Several positive factors are cushioning the impact of tariffs: India's beneficial position in supply chain diversification efforts (the "China +1" strategy), its comparatively low export dependence, softening commodity prices that help manage inflation, and the beginning of an easing rate cycle. These elements combine to create a resilient economic environment despite international trade pressures. The projected equity market returns of 8-12% for the financial year reflect this balanced outlook. India's economic revival remains on track, though with more selective opportunities than before and requiring more strategic investment approaches to navigate the uneven terrain created by global trade tensions.”
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