Samir Arora says India may still outperform if global markets decline on Trump tariffs

Samir Arora, Founder & Fund Manager at Helios Capital, believes India could still outperform even if global equity markets decline due to the ongoing tariffs wars, as the country is not directly affected.

While the ongoing tariff situation is a concern, Arora does not expect it to last for more than six to nine months. “At least this does not look like this itself is a trade war forever because the ask is not related to trade as of now. It is related to reducing immigrants and drugs,” he said.

He also pointed out that while the situation is serious, it does not resemble the trade wars of the 1930s, which led to market crashes. “It is bad, of course, but it is not like this is it and now therefore this is like the 1930s when there were trade wars and markets fell. But right now, this part will overshadow the fact that it was a good Budget,” Arora added.

In a separate discussion with CNBC-TV18, S Naren, Executive Director and Chief Investment Officer of ICICI Prudential AMC, pointed out that such ups and downs are common, and the market just needs to be prepared.

"We have to be prepared for volatility, and volatility is good, provided you know how to handle it," he said highlighting the importance of right asset allocation in managing risks.

New tariffs imposed by US President Donald Trump on China, Canada, and Mexico, which will take effect tomorrow. In response, Canada and Mexico vowed to introduce retaliatory tariffs, while China has reacted mildly. Trump cited concerns over fentanyl and immigration as key reasons for these tariffs.

Back home, Finance Minister Nirmala Sitharaman, said she is not worried about the tariffs. India's focus on manufacturing growth, a strong services sector, and advancements in artificial intelligence and science, technology, engineering, and mathematics (STEM) research as key drivers of the country’s economy, she told PTI.

Also Read | ‘I am not worried’: FM Sitharaman on US tariff threats

For the entire interview, watch the accompanying video

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