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Domestic consumption themes like financials, aviation, hotels, select autos, cement , defence and digital platform companies are likely to come out relatively unscathed from the ongoing crisis, according to an analyst.
Experts advise investors to remain cautious while calling it the “ideal time” to start mutual fund SIP. (AI-generated image)
Stock Market Crash: The stock market on Monday crashed to 10-month lows amid deepening global tariff war and US recession fears. The Indian market was down by around 4 per cent in the early trade with the BSE Sensex trading lower by around 3,000 points and the NSE Nifty was at below the 22,000 level, wiping out investors’ wealth by over 16 lakh crore. What should investors do? Experts advise investors to remain cautious calling it the “ideal time” to start mutual fund SIP.
“Globally markets are going through heightened volatility caused by extreme uncertainty. No one has a clue about how this turbulence caused by Trump tariffs will evolve. Wait and watch would be the best strategy in this turbulent phase of the market,” said V K Vijayakumar, chief investment strategist of Geojit Financial Services.
Vishnu Kant Upadhyay, assistant vice-president (research & advisory) at Master Capital Services, said, “Amid escalating trade tariff uncertainties, market volatility is expected to persist in the near term. However, long-term investment opportunities remain viable at current levels.”
Swapnil Aggarwal, director of VSRK Capital, said amid ongoing fears of a recession, Indian investors are advised to stay cautious but not panic. It’s important to maintain a balanced approach in the current market scenario.
Three Things To Keep In Mind
He added that there are a few things that investors should keep in mind. One, the irrational Trump tariffs will not continue for long. Two, India is relatively better placed since India’s exports to the US as percentage of GDP is only around 2 per cent and, therefore, the impact on India’s growth will not be significant. Three, India is negotiating a Bilateral Trade Agreement with the US and this is likely to be successful resulting in lower tariffs for India.
Sectors To Focus
On sectors to focus, Vijayakumar said, “Domestic consumption themes like financials, aviation, hotels, select autos, cement , defence and digital platform companies are likely to come out relatively unscathed from the ongoing crisis. Trump is unlikely to impose tariffs on pharmaceuticals since he is on the back foot now and, therefore, this segment is likely to show resilience.”
Vishnu Kant Upadhyay of Master Capital Services Sectors said such as finance, oil & gas, consumption, and FMCG are likely to offer relative stability for long-term investors.
Swapnil Aggarwal of VSRK Capital said focus should be directed towards sectors like FMCG, pharma, and finance, which are currently showing relative strength and resilience.
‘Ideal Market Environment For Mutual Fund SIP’
“For long-term diversification, Nifty Junior (Nifty Next 50) and Nifty ETFs are good options, although they may witness some short-term volatility. This market environment is ideal for starting investments through SIPs in mutual funds, which can help navigate volatility and build wealth steadily over time,” Swapnil said.
‘India’s Long-Term Story Is Intact’
Sounding optimistic, Manish Jain, chief strategy officer and director of Mirae Asset Capital Markets, said, “India’s long term story is intact”.
India’s GDP growth is estimated at 6.5 per cent for FY25. The debt-to-GDP ratio is expected to decline by at least 5.1 percentage points from 2024-25 to 2030-31. At some point in time, India could be a place to hide for FPIs, he added.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
