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Economic Times
3 hours ago
- Business
- Economic Times
Market hoping Trump's tariff threat a negotiation strategy; optimistic about lower rates eventually: Dikshit Mittal
LIC Mutual Fund's Dikshit Mittal believes the market views Trump's tariff threat as a negotiation tactic, hoping for eventual reduction. While significant tariffs could disrupt global supply chains and cause inflation, the market anticipates a favorable deal. Near-term volatility is expected to persist until tariff clarity emerges, with the textile sector facing the most heat due to high US exposure. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads , Senior Fund Manager,, says the market anticipates that Trump's tariff threat is a negotiation strategy, similar to past trade deals with other countries. There's hope for eventual tariff reduction through further discussions. However, if the threatened tariffs are implemented, significant global supply disruptions , inflation, and economic slowdown could occur, but the market is optimistic about a favorable deal with lower market is still hoping that this is not a done deal, and that this is a negotiating tactic from the US. It has happened with other countries also, like initially the higher tariffs were threatened and then some kind of trade deal was finalised. So, we are also hoping that maybe in the end, it may take some more rounds of discussions, but the eventual outcome should be lower than this kind of tariff. But if this tariff goes through, it can create large supply disruptions globally even in the US and it can create huge inflation as well as slowdown. But looking at all the factors as of now, the market is still pricing in that there will be some kind of a favourable deal and eventually tariffs will be lower than what has been threatened uncertainty, at least for the near term, is here to stay till we get some more clarity on tariffs. Even on the geopolitical level also, there has been much news maybe in the last one, one-and-a-half years. In the near term, we do not see any indication that this volatility will subside, but at the same time, in the last one year, the Nifty 100 or Nifty 50 returns have been more or less flattish. So, the market has been trying to consolidate, digest whatever news is coming in and at the same time some earning growth has been coming have grown around high single digit last year, and to that extent, valuations are now also becoming slightly cheaper compared to one year ago. At the same time, in the last one year, we have seen a large fall in the domestic bond yields and that is also leading to some kind of higher multiples into the equity. Near-term volatility is expected to stay, but at the same time, downside seems protected as of now because large segments of the market have not gone anywhere but earnings have been coming through more or less largely in may still spend some time within this range, and that is the take as of now. But if one is ready to take a more than one year kind of view, there is still money to be made but one has to be slightly more reasonable in terms of return expectations at least for the next one year.: Within the textile segment, we have a large market share in the home textile space, maybe bedsheets, towels and all. So, the companies that are present in this space have 60% to 70% exposure to the US as a percentage of their sales. And if the threatened tariff goes through, it can hamper their growth as well as margins materially. But at the same time, on the apparel side or other segments where we are more inclined towards the European or UK markets, the companies present in those segments may not be that much impacted is a very low margin sector and companies are working on thin margins and so they do not have the capability to absorb this kind of tariff hike. So, eventually it has to be passed on to the end customer but in the meantime, this kind of tariff uncertainty has created volatility. These companies say orders are getting deferred. Eventually, if these kinds of tariffs are passed on, textile companies will have a tough time till clarity comes is more B2B in nature and the kind of value chain where we are present, especially in the specialty chemicals, we are more into the intermediates, technicals or AI space where the value of these ingredients is very small as compared to the end product price and chemicals, especially the speciality chemical also requires some kind of technological edge, economies of scale, and the largest competitor is need to see what kind of tariffs are put on China also. So, chemical companies are relatively better placed compared to textile and we are mostly exporting chemicals to European markets and most of the listed companies have 15% to 20% exposure to the US and large part of the sales happen domestically as well as to the European and other geographies. Looking at the kind of value addition that we do in chemicals because the margins are pretty high, that sector is slightly better placed as compared to textiles.
Time of India
3 hours ago
- Business
- Time of India
Market hoping Trump's tariff threat a negotiation strategy; optimistic about lower rates eventually: Dikshit Mittal
Live Events You Might Also Like: Trump imposes 25% tariff on India over energy purchases from Russia (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel , Senior Fund Manager,, says the market anticipates that Trump's tariff threat is a negotiation strategy, similar to past trade deals with other countries. There's hope for eventual tariff reduction through further discussions. However, if the threatened tariffs are implemented, significant global supply disruptions , inflation, and economic slowdown could occur, but the market is optimistic about a favorable deal with lower market is still hoping that this is not a done deal, and that this is a negotiating tactic from the US. It has happened with other countries also, like initially the higher tariffs were threatened and then some kind of trade deal was finalised. So, we are also hoping that maybe in the end, it may take some more rounds of discussions, but the eventual outcome should be lower than this kind of tariff. But if this tariff goes through, it can create large supply disruptions globally even in the US and it can create huge inflation as well as slowdown. But looking at all the factors as of now, the market is still pricing in that there will be some kind of a favourable deal and eventually tariffs will be lower than what has been threatened uncertainty, at least for the near term, is here to stay till we get some more clarity on tariffs. Even on the geopolitical level also, there has been much news maybe in the last one, one-and-a-half years. In the near term, we do not see any indication that this volatility will subside, but at the same time, in the last one year, the Nifty 100 or Nifty 50 returns have been more or less flattish. So, the market has been trying to consolidate, digest whatever news is coming in and at the same time some earning growth has been coming have grown around high single digit last year, and to that extent, valuations are now also becoming slightly cheaper compared to one year ago. At the same time, in the last one year, we have seen a large fall in the domestic bond yields and that is also leading to some kind of higher multiples into the equity. Near-term volatility is expected to stay, but at the same time, downside seems protected as of now because large segments of the market have not gone anywhere but earnings have been coming through more or less largely in may still spend some time within this range, and that is the take as of now. But if one is ready to take a more than one year kind of view, there is still money to be made but one has to be slightly more reasonable in terms of return expectations at least for the next one year.: Within the textile segment, we have a large market share in the home textile space, maybe bedsheets, towels and all. So, the companies that are present in this space have 60% to 70% exposure to the US as a percentage of their sales. And if the threatened tariff goes through, it can hamper their growth as well as margins materially. But at the same time, on the apparel side or other segments where we are more inclined towards the European or UK markets, the companies present in those segments may not be that much impacted is a very low margin sector and companies are working on thin margins and so they do not have the capability to absorb this kind of tariff hike. So, eventually it has to be passed on to the end customer but in the meantime, this kind of tariff uncertainty has created volatility. These companies say orders are getting deferred. Eventually, if these kinds of tariffs are passed on, textile companies will have a tough time till clarity comes is more B2B in nature and the kind of value chain where we are present, especially in the specialty chemicals, we are more into the intermediates, technicals or AI space where the value of these ingredients is very small as compared to the end product price and chemicals, especially the speciality chemical also requires some kind of technological edge, economies of scale, and the largest competitor is need to see what kind of tariffs are put on China also. So, chemical companies are relatively better placed compared to textile and we are mostly exporting chemicals to European markets and most of the listed companies have 15% to 20% exposure to the US and large part of the sales happen domestically as well as to the European and other geographies. Looking at the kind of value addition that we do in chemicals because the margins are pretty high, that sector is slightly better placed as compared to textiles.
Hans India
21-07-2025
- Business
- Hans India
Indian stock market rebounds sharply amid buying in banking heavyweights
Mumbai: Snapping the losing streak, the Indian stock market closed in the positive territory on Monday, following value buying in banking heavyweights, as Sensex gained over 442 points. Sensex settled at 82,200.34, up 442.61 points or 0.54 per cent. The 30-share index opened in green at 81,918.53 against last session's closing of 81,757.73. However, the index experienced a volatile session, hitting intra-day low at 81,518.66. Nifty50 closed at 25,090.70, up 122.30 or 0.49 per cent. Analysts said that positive results from banking majors supported the market to rebound after many days of consolidation. 'The market remains highly reactive to earnings, indicating that investors remain focused on the earnings front to aid valuation," they added. The manufacturing segment gained today as the government is reviewing the scope of expanding the infrastructure spending to support growth. In the Sensex basket, Zomato, ICICI Bank, Adani Ports, HDFC Bank, Mahindra and Mahindra, BEL, Kotak Bank, Tata Motors, Bajaj FinServ, L&T, Power Grid and Kotak Mahindra Bank settled in positive territory. While Reliance, HCL Tech, Hindustan Unilever, TCS, and ITC were closed in red. Meanwhile, 28 stocks advanced, 21 declined, and one remained unchanged from the Nifty50. Among sectoral indices Bank Nifty soared 430 points or 1.62 per cent and, Nifty Auto jumped 0.67 per cent or 160 points. At the same time Nifty IT and Nifty FMCG ended the session in red. Broader indices witnessed a sharp rally with Nifty 100 closed 121 points higher, Nifty Midcap 100 surged 363.85 points, and Nifty Next 50 settled 278 points up. "Persistent uncertainty surrounding ongoing trade negotiations between the US and India tempered overall market gains, with investors closely monitoring the outcome of these high-stakes discussions for further cues, according to Ashika Institutional Equities. Rupee traded weak by 0.18 per cent at 86.25 as focus shifts to this week's Fed Chair Powell's speech, which is expected to drive volatility in the dollar index. Additionally, key economic indicators such as Manufacturing and Services PMI will be closely tracked by market participants, said Jateen Trivedi from LKP Securities.
Time of India
16-07-2025
- Business
- Time of India
What makes passive funds a smart choice for long-term investors?
Fund houses are making several launches in the passive space, where portfolios merely mimic the underlying index. They are gaining popularity as they offer a simple and low-cost way to gain exposure to a broad, diversified portfolio. WHAT IS A PASSIVE FUND? A passive fund tracks the performance of a market index by buying the same stocks or bonds as the index. The two types of passives are exchange traded funds (ETFs) and index funds . These funds aim to replicate the investment returns of particular benchmark indices by holding a securities portfolio that closely mirrors the index's composition. They are called passive funds as there is no fund manager involvement in choosing any stock in the scheme. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » WHY ARE THERE A SLEW OF PASSIVE LAUNCHES THESE DAYS? The markets regulator Sebi specifies that a fund house can have only one scheme in each category. With large fund houses having exhausted their actively managed categories by launching a scheme in each, they are now slowly adding passive schemes to build their presence there WHAT INDEX FUNDS ARE AVAILABLE IN INDIA? Equity index funds dominate the scene. The most popular are those tracking the Nifty 50, S&P BSE Sensex, Nifty 100, Nifty Midcap 150, Nifty Smallcap 250, Nifty 500, Nifty Total Market, and BSE 1000. Global flavours are available too, with funds pegged to the Nasdaq 100 and S&P 500. For those looking at specific sectors, there are index funds targeting IT, pharma, consumption, manufacturing, and more. But the star of the show in India remains the Nifty 50 index fund. WHEN DO PASSIVE FUNDS OUTPERFORM ACTIVE FUNDS? Passive funds tend to shine when markets are efficient and opportunities for stock-picking are scarce. Their low costs give them an edge, but the real kicker comes when market rallies are driven by a handful of heavyweight stocks—think narrow leadership—leaving active fund managers struggling to keep pace, especially when stretched valuations make selective bets tricky. In such times, simply tracking the index often proves to be the smarter, more consistent approach. WHO SHOULD USE PASSIVE FUNDS? WHAT ADVANTAGES DO THEY OFFER? Passive funds, with their low costs and no fund manager bias, are ideal for investors who want simple, broad-based equity exposure without worrying about which scheme or manager to pick. They're suited for those with a long-term horizon—10 years or more—who prefer a steady, hands-off approach and want to avoid risks like manager churn or sudden shifts in a fund's strategy. WHO COULD IGNORE THE PASSIVE CATEGORY? Passive funds aren't for everyone. Since they blindly track an index, fund managers can't avoid stocks they dislike or hold cash when markets look pricey. Investors chasing alpha (returns above the benchmark), willing to take higher risks, and comfortable managing their portfolios may prefer active funds, or choose to keep passive allocations small.
India Gazette
08-07-2025
- Business
- India Gazette
Nifty, Sensex open flat in red as Trump tariffs take centre stage, investors await clarity
Mumbai (Maharashtra) [India], July 8 (ANI): Indian stock markets opened under pressure on Tuesday as concerns over US President Donald Trump's fresh tariff measures took centre stage. However, investors appeared to adopt a cautious 'wait and watch' approach, awaiting further clarity on developments. The Nifty 50 index opened at 25,427.85, down 33.45 points or 0.13 per cent, while the BSE Sensex also saw a marginal decline, opening at 83,387.03, down by 55.47 points or 0.07 per cent. Ajay Bagga, Banking and Market Expert, told ANI, 'Trump Tariffs occupied centre stage, on expected lines on Monday, as letters detailing tariffs were issued to 14 countries. Markets reacted slightly and not in the panic mode of April 2nd to April 9th. Over the past 90 days, the markets have become more resilient, looking past the Trump policy ambiguity to Trump actions'. He added 'The big takeaway on Monday was that the July 9th tariff imposition deadline has been moved to August 1st. This gives 23 more days for further negotiations, even to the 14 countries that were sent letters on Monday imposing tariffs.' Experts also highlighted that India and the European Union are expected to announce mini deals. However, the urgency for announcing transitional arrangements has reduced with the extension of the deadline to August 1st or potentially even later. The broader markets on the NSE showed a mixed trend. Nifty 100 remained under pressure, down by 0.09 per cent. However, Nifty Midcap 100 and Nifty Smallcap both recorded a modest gain of 0.04 per cent at the time of filing the report. Among the sectoral indices, a mixed trend was visible. Nifty FMCG, IT, and Nifty Consumer Durables were trading in the red, while Nifty Media, Metals, Auto, Pharma, and PSU Bank witnessed gains. Akshay Chinchalkar, Head of Research at Axis Securities, said, 'The Nifty ended absolutely flat after trading in a tight range. Technically speaking, after Friday's hammer candle, we have traced a 'spinning top' formation yesterday. This means a great deal of indecision still prevails, but tactical bulls have to defend 25,331 on the way down. On the upside, 25,587 represents the first hurdle, followed by the swing high around 25,670. Asian cues are supportive, as the drop in US equities has failed to impact Asia on the downside.' In terms of earnings, companies such as 5paisa Capital, Umiya Buildcon, Lake Shore Realty, SER Industries, and Delta Industrial Resources are set to report their Q1 results for the current financial year. In the Asian markets, Japan's Nikkei 225 was up 0.31 per cent, Hong Kong's Hang Seng Index gained over 1 per cent, South Korea's KOSPI surged 1.17 per cent, while Taiwan's Weighted Index declined by 0.63 per cent. Investors are likely to remain cautious for the next few sessions, with attention now turning to the upcoming earnings season. The results of major software companies scheduled for July 10 are expected to set the tone for the near-term market direction. (ANI)
