In an interview with Kshitij Anand of ETMarkets, Bhattacharya stated: “Within the present setting of tariffs and a worldwide financial slowdown, we want sectors like healthcare supply and home consumption,” Edited excerpts:
Q) Thanks for taking the outing. Effectively, we began off April or the brand new monetary yr on a risky notice with tariff uncertainty. What’s your tackle markets for FY26?
A) We imagine that the fairness markets will see a restoration put up the crash pushed by Trump’s tariff struggle. We imagine the Indian financial system is effectively positioned internally to develop regardless of geopolitical uncertainties.
Q) What’s your tackle US Tariff launched by the Donald Trump authorities. How will it affect financial system and Indian markets?
A) The tariffs launched by the Trump administration are more likely to set off a level of world commerce uncertainty. For India, we anticipate some affect on exporters, primarily as a result of two components:
a) Foreign money volatility which will come up as a consequence of escalating commerce tensions, andb) Strain on export volumes and realizations as a result of shifts in competitiveness vis-à-vis different geographies.Whereas the direct affect on India could also be restricted in comparison with nations extra deeply built-in with US commerce flows, the broader ripple impact on world sentiment and provide chains may weigh on each the financial system and markets.
Q) The chatter of a worldwide slowdown turns into louder with new tariff measures in place from the US. How would that affect India and world financial development?
A) A worldwide slowdown would affect each financial system together with India as nobody is insulated on this market.
Q) Do you suppose earnings of India Inc. would possibly take a success with tariff measures which might in flip lead to earnings downgrades?
A) Sure, exporters are notably weak to earnings downgrades as a result of tariff measures. Sectors that could possibly be impacted embody IT companies, auto part producers, and firms within the defence and electrical gear area.
These industries rely closely on abroad markets, and any tariff-related headwinds may immediately have an effect on their prime line and margins.
Q) Which sectors ought to one search for to deploy contemporary cash amid tariffs and world financial slowdown?
A) Within the present setting of tariffs and a worldwide financial slowdown, we want sectors like healthcare supply and home consumption.
These are largely India-focused, comparatively insulated from world headwinds, and fewer delicate to foreign money fluctuations, making them extra resilient funding themes at this stage.
Q) How are HNIs and big-ticket buyers allocation cash? Are they diversifying globally or shopping for treasures to guard the portfolio?
A) Tough to make a generic assertion on this. Nonetheless, the savvier buyers want to deploy based mostly on particular person bottom-up inventory selecting.
Q) How ought to one play small & midcaps in FY26?
A) One ought to go chubby in small, and midcaps put up the latest fall. It has develop into clearer that the dominance of the bigger firms in India is getting challenged owing to innovation by smaller firms and that could be a mega development right here to remain.
(Disclaimer: Suggestions, solutions, views, and opinions given by specialists are their very own. These don’t signify the views of the Financial Instances)
