Market experts said the IT sector, along with gems and jewellery sector could be staring at a negative impact, given the heavy reliance on US demand. EMS may not get as badly affected owing to concessions for manufacturing in India. Even though Trump’s tariff threat was getting digested by the market in phases, the near 50 percent tariff rate is no good for the short term, analysts agreed.
Bank Nifty is still below the 200-day moving average, says Jain. Though private banks such as ICICI Bank, HDFC Bank, Axis Bank, Yes Bank, IndusInd Bank are showing some signs of recovery
In an exclusive interview with CNBC-TV18, Jyotivardhan Jaipuria head-research with Bank of America Merrill Lynch says that the Indian market valuations currently reasonable. He is bullish on “the sectors of banking, pharma and IT.” He is however not bullish on the infrastructure space.