After tariff-led concerns, in the current case, "markets appear more focused on the earnings trajectory and the adaptability of businesses to navigate such policy shifts," Pawan Bharaddia, the CIO at Equitree Capital, said in an interview to Moneycontrol.
According to him, the narrative is shifting toward business visibility, execution capability, and growth momentum rather than solely on the tariff overhang.
Meanwhile, among sectors, Pawan Bharaddia advised holding capital goods and travel-related stocks in the portfolio, considering the expected growth in both sectors.
Do you think it’s better to ignore the tariff noise, considering India doesn’t export significantly to the US?
While India’s direct exports to the US are not as significant as some other economies, tariffs can still have indirect consequences. Global supply chains are interconnected, and shifts in trade flows affect pricing, sourcing, and competitive positioning. The real impact needs to be assessed bottom-up — products where India already commands a sizeable global market share could face pressure.
On the other hand, technology- and engineering-led segments, where global alternatives are limited, may remain relatively insulated. The key is to separate headline noise from the ground reality in each business segment.
Given that the market is already aware of the specifics of the 50 percent tariff, do you believe investors have started to look past the tariff concerns and are now focusing more on earnings and the growth recovery journey?
Yes, to a large extent. If we look at the precedent with US–China tariffs, there was initial market volatility, but some relaxation and negotiated settlements followed. In the current case, markets appear more focused on the earnings trajectory and the adaptability of businesses to navigate such policy shifts. The narrative is shifting toward business visibility, execution capability, and growth momentum rather than solely on the tariff overhang.
Do you strongly believe that falling interest rates and potential tax cuts could fully revive the economic slowdown witnessed over the past 12 months?
The main challenge over the last year has been subdued demand. Measures such as lower interest rates and potential tax relief can directly help revive consumption. A demand-led recovery also improves capacity utilisation, which in turn encourages private capital expenditure. If these measures are implemented in a coordinated way, they can have a multiplier effect, leading to a more broad-based economic revival.
Do you expect significant earnings growth to continue in the cement, hospitality, and real estate sectors in the coming quarters?
Cement: We are seeing consolidation in the sector, with aggressive price wars easing. This rationalisation, coupled with steady demand from infrastructure and housing, supports earnings growth.
Hospitality: The travel and tourism rebound remains strong, with India recently ranked among the world’s top 10 tourist destinations. Occupancy rates and average room rates are both trending higher.
Real Estate: Demand remains mixed — certain micro-markets are performing very well, driven by local demand–supply dynamics, while others are still lagging. Developers with strong balance sheets and execution track records continue to benefit disproportionately.
Is it advisable to hold capital goods and travel-related stocks in the portfolio, considering the expected growth in both sectors?
Yes. Capital goods benefit from the ongoing infrastructure push and the gradual revival in private capex. Travel-related businesses, including hospitality and aviation, are still in the midst of a demand upcycle as both leisure and business travel normalise and expand. Selectivity and valuation discipline remain important, but the sectoral backdrop is positive.
Do you anticipate a fiscal stimulus announcement from the government soon, aimed at countering the tariff impact on export-oriented sectors and boosting overall economic momentum?
The government has already indicated a support package of approximately Rs 25,000 crore, pending final clearance from the Finance Ministry. Alongside this, there is active diplomatic engagement — including recent high-level visits and bilateral discussions with China, Russia, and Brazil — aimed at managing tariff issues and safeguarding trade flows. This combination of fiscal measures and diplomatic outreach suggests a clear intent to support exports while sustaining overall economic momentum.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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