Global companies sourcing from countries like China, Mexico, and India may experience EPS pressure due to upcoming US tariffs. Despite the uncertainty, this situation may benefit India in the medium term, particularly in labor-oriented sectors. Investment confidence and diversification are recommended.
Indian markets have performed well over the past few years, yet witnessed weak participation from foreign portfolio investors (FPIs). However, there are signs of increasing FPI interest, particularly in India and China, driven by global market uncertainties and attractive valuations.
HUL share price: The brokerage also lowered its target price for HUL to Rs 2,330 from Rs 2,540, citing macroeconomic challenges and weak consumer demand, especially in rural India. BofA noted that pricing pressures and inflationary costs in key segments like tea and soaps could impact the company's short-term performance.
The Nifty Pharma index was trading 0.4 per cent up at 20854.8.
JPMorgan reduced its target price for Tata Consultancy Services (TCS) to Rs 3,900 from Rs 4,500, Infosys to Rs 1,900 from Rs 2,350, HCL Tech to Rs 1,700 from Rs 2,200, and Tata Elxsi to Rs 4,500 from Rs 5,400.
Mayuresh Joshi of Marketsmith India explains the uncertainties around Trump's tariffs, potential sectoral impacts, and the volatility they may bring to equity markets. He suggests that while industries like autos may continue to face challenges, Indian pharmaceuticals might experience some relief. Positive domestic consumption and government investments are expected to drive growth despite global pressures.
In the Nifty50 index, 32 stocks were trading in the green, while 18 stocks were in the red.
India's fixed-income market is evolving, driven by the rise of embedded finance and regulatory reforms. Integrated financial services are making bonds more accessible to retail investors, promising greater financial inclusion and a diversified funding landscape. The convergence of technology and favorable regulations is shaping a robust bond market in India.