Talking to ET Now, Sinha said that it would be “myopic” to judge the market response in the short term because India and the US The tariff negotiations in the middle will be a long -drawn process. “Even after negotiations, we are paying attention to the tariff of 20-25% compared to the average%% before the Trump rule. This will have a permanent impact on corporate earnings.”
While warning “fragmentation and protectionism” affecting trade and capital flow, Sinha said investors should arrange with structural home themes. “We need to be very careful, but in consumption, auto, e-CE Mars and renewed, opportunities are emerging despite global headwinds,” he said.
A Corporate Ropper growth Depression
Corporate topline growth for non-financial companies has slowed down in the quarter before, which has areas such as consumer goods, auto and engineering witness. Sinha warned, “Except for BFSI, most sectors have made negative returns in the past year. Profess growth, which is 20% on average by 2024, has now become 5% in the recent quarter. The next way looks gentle,” Sinha warned.
He highlighted that while the government was trying to balance shocks through incentives associated with GST improvement, rate cuts and consumption, financial barrier could limit infrastructure costs. “Capital goods have already been revised by 12-113% in the past year, and with a tax income agreement, the government capex could retreat,” he said.
With around Rs 1,60,000 crore in tax revenue between the state and central governments, the GST reduction could hinder government expenditure, which has been stable for the last six to seven years, slow infrastructure funds. With the reduction in tax revenue, GST collection is also expected to decline, which limits the government’s ability for significant capital spending on infrastructure, and industry -dependent industries on government spending.
Regional point of view
At a regional point of view, Sinha is the biggest beneficiaries that pointed to domestic consumption plays. “Auto, consumer sectors and some extent pharma, which is exempt from tariffs, will benefit from GST reduction and home-based steps. Investors are already turning from BFSI into consumption-based areas,” he explained.
He called the renewable E-CE Mars and Auto toe affiliates promising opportunities. Sinha added, “Solar energy space is seeing aggressive activity. E-CE Mars can benefit from the velocity of consumption, while auto ancillaries have a stand to benefit from lower tax rates. After March 2026, the return of the return cess, especially the auto.
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