“The one hope India had was if the Russia-Ukraine peace deal that Mr Trump brokered had seen progress, which may have softened the (second tranche of) 25% ‘political tariff’. However the first 25% that had been imposed was all the time going to remain. The cancellation of the commerce delegation’s go to and the rhetoric on either side made it clear there can be no last-minute reprieve,” Subramaniam mentioned.
The market veteran identified that the US president had used some fairly sturdy language towards China yesterday. Clearly, he is holding agency on tariffs, and a decision cannot be anticipated anytime quickly, for each India and America.
On equities, he famous that whereas international institutional investor (FII) flows could stay subdued because of excessive valuations and lack of readability on commerce relations, home traders will proceed to assist the market. “I don’t see a powerful unfavourable response. Markets will consolidate and there might be sectoral rotation relatively than a pointy correction,” he added.
Selective alternatives seen in capital items, autos and healthcare
Amongst sectors, Subramaniam stays optimistic about capital items, pushed by home demand relatively than world commerce. “Personal capex has not taken off totally but, however inexperienced shoots are seen. With capability utilisation set to cross 80%, capital items, cement, industrials, constructing supplies, metal and EPC contractors look enticing for medium-term traders,” he mentioned.
The auto sector, he identified, is prone to see sturdy festive demand, notably in two-wheelers, entry-level vehicles, tractors and industrial autos, although export-oriented auto parts may really feel tariff strain. Pharma stays a combined bag, with sturdy home progress however an overhang from Trump’s threats of steep tariff hikes. “If these don’t materialise, Indian pharma and healthcare, particularly hospitals and diagnostics, stay good funding themes,” he mentioned.Apparently, Subramaniam believes US drug value cuts may even increase outsourcing to India. “Huge pharma will doubtless adjust to Trump’s request to chop costs. To protect margins, they might improve outsourcing to India’s contract drug producers, which is able to really profit Indian gamers,” he defined.General, whereas tariffs could dampen international flows within the brief time period, Subramaniam sees resilience in domestic-driven sectors and selective alternatives throughout capital items, autos and healthcare.A night at Lal Qila, September 27, 2025 — reserved for Occasions Black ICICI Financial institution Credit score Card holders. Entry monumental experiences at timesblack.com
