Trump, Tariffs & Sectors to Watch Out For
Thoughts on the markets and how to navigate the volatile times
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The anticipation of the Trump tariffs is now over. India gets hit with a 26% tariff with exemptions for pharma and other industries. Other countries like China, Vietnam have been hit much worse.
Here are my first impressions:
The uncertainty will slowly recede, and business will start coming back into focus.
Domestic themes, including infrastructure, capital goods and consumption, are likely to be more dominant.
Spending on defence in Europe is set to rise manifold. Manufacturing companies which are European subsidiaries or suppliers to European companies are likely to benefit.
Interest rate reduction, tax breaks and the upcoming Pay Commission are likely to boost consumer sentiment.
India will shift focus back to India-US trade negotiations to look at individual sectoral tariffs.
Key Takeaway:
The focus for the next 12-18 months will be on domestic plays - pharma, chemicals, financials, real estate, infra, capital goods, metals and cement are the sectors to watch out.
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