According to Gupta, only 2% of MSCI India’s revenue is directly influenced by tariffs. “The noise is loud, but the direct impact on the companies listed is very low. Short -term investors and traders can sell panic, and foreign portfolio investors (FPIs) can continue to sell. But this opens up,” he explained.
Gupta published that areas connected with domestic consumption would benefit the most. “The government is using all the tools – tax cuts, rate cuts, GST measures and support for rural demand,” he said. This customer is positive for tech, auto, building materials, paints, durables and staples. “
Pockets worth value in midcaps and smallcaps
In the case of Midcaps and Smallk APPs, Gupta pointed to many areas of value. It sees the strong probability of building materials, home pharma and chemicals. Gupta noted that “plywood, tiles and paint companies are attractive and should benefit from the real estate cycle. Household pharma is a sweet space with a steady 15-20% growth probability, while chemical companies have increased capacity and can provide strong return once demanded,” Gupta noted.
Most Indian chemical companies are mainly Europe and the US. Exports, while many Chinese companies face anti-dumping duties, which offer significant opportunity. Indian companies have recently completed or are close to final costs, increasing production capacity. With promising evaluation and increasing demand, their growth related to the value of the trade is potentially attractive, ”says Gupta.
Despite the current instability, Gupta believes that patient investors will benefit from these opportunities. He added, “This is the time to look out of noise and focus on areas where the fundamentals remain strong.”
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