Fears Trump’s tariffs will derail EMs

Date: 18th Nov 2024 | Publication: Ausbiz Mugunthan Siva from India Avenue Asset Management shares concerns over recent fluctuations in India’s market returns. India’s earnings show a dip in growth, with the September quarter rising only 3-4% compared to a previous 15% pace, influenced by monsoons and global volatility. Mugunthan highlights fears of global tariffs affecting India’s market, amid Donald Trump’s ambiguous tariff intentions with China. A shift to local recruitment helps Indian IT firms tackle visa hurdles. Pharmaceutical stocks face uncertainty under Robert Kennedy’s potential policies, affecting Indian exports. Inflation in India is driven by rising food prices, shifting central bank policy towards a neutral stance. Mugunthan suggests investors consider India’s healthcare and infrastructure sectors over financials. Current valuations seem reasonable for new entries, but existing investors may hold off.