While Thursday’s Sensx ‘MUped 300-point drop shows that the markets had partially priced in stator tariffs, analysts have warned the actual massacre in exported shares that it is just starting, and paralysis may remain for months.
Trump’s punitive tariff on Russian raw imports has pushed out the total American duties to Nomura level “similar to a business embarrago.” The rate of 50%, 20 points higher than China and 21 points over Pakistan, a group of billions of dollars of export areas threatened.
“This is a difficult period for investors to navigate,” warns from Seshadri Sen MK Global“Terms of the final trade deal may still be quite different, although one of the worst conditions, the highly harmful landscape has presented themselves.”
The massacre is already being mapped from the sector to the sector. Sen identifies the weakest people: “The most affected areas are Gokaldas/Kitex, Chemistry, Aarti and Atul, and Auto ANCs (BHFC/Suprajit/Sona BLW), which are with direct export risk to the US.”
Nomura analysis suggests that the scale of destruction suggests: “If effective, 50% of tariffs will be similar to an ambargo, and will suddenly stop in the affected export products. Low price add and thin margins (textile, gems and jewelery) in many industries can endanger, especially struggle for small firms. Trump doubles tariffs on India up to 50% from the purchase of Russian oilThe US is 18% of India’s total exports and 2.2% of GDP, with 30-40% of its global exports in major areas to the US. To work on thin margin for textile, gems and jewelry, and leather companies, the tariff wall can prove to be inaccessible.
Domestic brokerage firm SBI Securities has warned American brands of collateral damage to Indian companies operating. “Stay away from US brands, as a domestic franchise, as a clamor to boycott American products and follow indigenous models,” brokerage warnings, “Dominant Foodworks (Domino, Duncin Donut), Westlife (McDonalife), Devyani International (Pepsi) (Pepsi),” Pepsi King), “Pepsi King),”
Mahesh Patil Aditya Birla Sun Life AMC The similarities with Brazil’s experience draw: “We are now equal with Brazil, which provides a blueprint, it saw a decline of 6-7% from the peak before recovering in local words.”
The fall of the rupee, while painful, provides an inverted benefit. “The immediate casualties are INR, which will take the brunt – it will provide some relief to the exporters. Conflict, the decline in the INR (once it gets stable) is positive for local earnings, and so equity benefits with an interval,” Patil explains.
What should investors do?
With export areas in Crosshare, investment playbook is moving towards domestic consumption. SBI Securities “recommend focus on domestic-centered businesses such as cement, hotels, telecom, new age business, EMS players, auto/auto assistants, hospitals, railways, and drug-centered businesses such as drug-centered beverages.”
Ajay Sen of Emkay Global has maintained confidence in India’s structural flexibility: “We see a wider economy flexible and is confident of the recovery of 2hfy26 consumption.
Dipping
Many analysts are creating a crisis in the form of a possible gold mine for patients. Sen’s four-point survival strategies include: “If the market reform exceeds 5% from here, buy a dip. The evaluation will then be below the long-term average, and the direct impact on the listed universe is negligible.”
Dr. VK Vijayakumar off Geogit financial services Attack a balanced tone: “The market is unlikely to panic, but weakness will continue in the near period. Since uncertainty is high, investors should adopt a cautious approach.”
Your investment strategy depends significantly on your investment horizon and risk hunger. Santosh Meena Swastik investmart Long -term investors recommend to stay in the course: “This development is part of the ongoing global trade stress and should not be distracted by India’s long -term growth capacity. But short -term traders should be cautious.”
For long -term investors, the unanimous unanimous remains surprisingly optimistic. The story of India’s domestic consumption remains intact, with it, pharmaceuticals, and electronics exempt exemption from especially current tariff declarations.
As Patil concluded: “Any knee-shock improvement in the market will be a good opportunity to increase allocation to equity, as India’s comprehensive economic approaches and long-term basic things are quite strong.”
The 21-day countdown for tariff implementation has started. Now markets may be paralyzed, but for those wishing to see beyond immediate chaos, the foundation for the next rally may be already.