“Everyone knows about Trump. Even those who voted for him acknowledge that he’s a bit erratic, perhaps even uncivilized in some ways. The way he impulsively says things, makes sudden decisions—even ones with serious consequences for large nations like India—based on personal emotions or perceived insults, is not sustainable. This too shall pass,” says Porinju Veliyath, Equity Intelligence India.
So much is happening—how should the Indian investor be looking at equities right now and cut through all the surrounding noise?
Porinju Veliyath: Yes, it’s true there’s a lot of noise around the tariffs, but I believe this will be a passing phase. The world will continue to do business and engage in trade, with or without America. It’s not a big issue. But we cannot respond to this whole crazy situation created by a rather unpredictable man with an emotional or sentimental mindset.
India has come a long way over the last decade as a stable and strong nation. We have our own individuality and personality. We have evolved significantly. Today, we are one of the strongest nations globally—not just in terms of the size of the economy, but also in terms of identity and maturity. We’re not going to react to such developments emotionally or based on temporary sentiment.
Everyone knows about Trump. Even those who voted for him acknowledge that he’s a bit erratic, perhaps even uncivilized in some ways. The way he impulsively says things, makes sudden decisions—even ones with serious consequences for large nations like India—based on personal emotions or perceived insults, is not sustainable. This too shall pass.
We can’t depend on one individual, even if he is the president of the world’s most powerful country today. Presidents and people will come and go. But the India–US relationship is deep and strong, and will continue to remain so in the long term.
We must view this as a responsible and confident nation—and I’m glad to see that the Indian government is doing exactly that. We’re not reacting impulsively. We’re not trying to escalate the situation with rhetoric. We’re being rational, sticking to facts, and showing maturity. That approach deserves appreciation.So, investors shouldn’t worry too much. Yes, there’s an issue right now, but we will overcome it.
But as an investor, what should one be buying right now? And what should one be avoiding, considering the uncertainty—not just from tariffs, but also from earnings pressures and signs of a slowdown back home?
Porinju Veliyath: Coming back to the market and economy—India is one of the fastest-growing large economies. We are going through a very vibrant economic phase. In fact, our true potential—the ecosystem and platform being built for much higher growth—is not fully reflected in the current 6% to 7% GDP numbers.
Our domestic economy alone is quite large, and it is growing steadily. Investors should focus on the domestic market—on goods and services.
There’s another important point many small-time investors may not realize: this tariff talk is primarily about goods, not services. And when it comes to global exports, services form the largest part of India’s exports, and that segment continues to grow.
Even though there are some concerns about possible disruptions from the AI revolution, those fears may be exaggerated. While AI might impact certain top layers of service jobs, India has a big role to play in AI applications globally. Many Indian companies have already started building products and services in this space and are working with global clients.
So yes, there is uncertainty—but equally, there are opportunities. There are pockets of value. However, investors must understand that this is not a cheap market from a value investing perspective. Broad market valuations are not low. It’s not a time for indiscriminate bargain hunting.
That said, opportunities always exist. Even in today’s market, we see potential in domestic-focused companies, service exporters, and businesses in the AI segment. Investors need to be selective—this is a stock-picker’s market. Cherry-picking is the right approach.
To sum it up, while the broader market may not be offering deep value, there are pockets where smart investors can find opportunities. The Indian economy will continue to perform well. These tariff and trade issues are temporary blips. And as I said earlier, India is too big and too stable a country to be impacted by the whims of one individual—even someone like Mr. Trump and his unpredictable or childish behaviour.