'President Trump doesn’t impact my investing cycle': Raamdeo Agrawal explains why

‘Trump doesn’t impact my investing cycle’: Raamdeo Agrawal explains why

• Raamdeo Agrawal says Trump's tariff moves don't affect his investment strategy
• Agrawal expects Indian markets to perform better in 2026 as earnings recover
• Large caps, PSUs, and auto sector seen as outperformers for investors

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As Donald Trump's incessant tariff flipflops continue to impact markets globally, ace market expert and Motilal Oswal Group Chairman Raamdeo Agrawal said that the US President's decisions don't impact his investments.

While speaking at CNBC TV18 Market Forum event "The Alpha Generators for 2026", Agrawal acknowledged that Trump's decisions do have an impact on the world because the world has become very interdependent due to the multi-lateral globalisation.

"On one side Trump is happening, and on the other side, AI is happening. I don't know how to figure out which one will impact how much. So, I am very happy that I am in India. I do things that I understand, and you need to have a view on four-five things and find ideas out of it," he said.

Entrepreneurs or magicians?

On being asked if such macro uncertainties can pose a threat to valuation, Agrawal said equity is a very "exotic" asset class. "Equity has a huge power to take in a lot of uncertainty, and yet, there are few entrepreneurs who can act like a magician and navigate all kinds of risks. We have to find them, who can navigate such hard times and deliver earnings," the market analyst added.

Agrawal further said that AI may have reduced the terminal value of Indian IT sector from what it was five year back. However, the analyst took the example of Yoga to explain the fast adoption of AI in India. “Yoga was discovered in India. However, people in US and other countries practice it more than us now. Similarly, AI was established in US or China, but we are the fastest and biggest adopter of AI,” he said, adding that Indian IT services companies will deliver the highest number of AI agents.

How will markets perform in 2026?

After nearly muted returns in 2025, the market expert expects 2026 to see better performance from the markets as the earnings cycle is turning after a brief lull over the past four-five quarters. He noted that the government is also trying its best to support the economy through various measures, including GST rationalization.

Agrawal sees GDP recovery over the next 12 months, which in turn will boost earnings and subsequently markets.

Which sectors will outperform?

"Large caps have better chances to perform well in the markets, than midcaps and smallcaps. PSUs still have lot of steam. They are much more reasonably valued than the private sector, and earnings growth is almost 2x higher than the private sector," the analyst said.

He was also very optimistic about the auto sector, and said investors should buy auto ETFs.

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