{"id":135667,"date":"2025-09-11T08:02:18","date_gmt":"2025-09-11T08:02:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/135667\/"},"modified":"2025-09-11T08:02:18","modified_gmt":"2025-09-11T08:02:18","slug":"time-to-accumulate-not-exit-tariff-hit-stocks-sunil-subramaniam","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/135667\/","title":{"rendered":"Time to accumulate, not exit, tariff-hit stocks: Sunil Subramaniam"},"content":{"rendered":"

The Indian stock market remained on edge this week as investors weighed the impact of U.S. President Donald Trump\u2019s shifting stance on trade talks with India. After an early surge following Trump\u2019s posts about resuming discussions, volatility<\/a> returned once his comments on fresh tariffs and the European Union surfaced.<\/p>\n

Speaking to ET Now, Sunil Subramaniam, Managing Director of Sundaram Mutual Fund<\/a>, offered a sharp perspective on both the political and market dimensions.<\/p>\n

Trump as a \u201cChief Business Officer\u201d
\u201cLet me state my point of view,\u201d Subramaniam said. \u201cI think of Trump as a businessman, not as a president. He is the sole decision-maker, and everything around him is part of his pressure tactics. If you go back to his book The Art of the Deal from 1987, you\u2019ll see the pattern\u2014make outrageous demands, unsettle the other side, and then force a middle ground. I view him as the Chief Business Officer of America rather than its president.\u201dAccording to him, the recent 25% tariff announcement had \u201cnothing to do with India.\u201d Instead, he argued, \u201cWe are being used as a guinea pig to pressure Russia. But that diplomacy<\/a> has failed, and now he is trying to rope in the EU after realising his approach didn\u2019t work.\u201d\"ETLive EventsInvestor sentiment and FII flows
On the market\u2019s reaction, Subramaniam downplayed the idea of a zigzag trend. \u201cPost August 15, FIIs<\/a> were net sellers of Rs 1,000\u20131,500 crore daily. Yesterday, they turned positive with Rs 2,000 crore, and today\u2019s provisional data shows just a small negative. I don\u2019t see a real zigzag. The change in Trump\u2019s approach is being viewed positively. FIIs coming back is clearly seen in IT shares rallying 2.5% on consecutive days.\u201dHe added that the fluctuations were more about \u201cdomestic investors reallocating portfolios and sectoral shifts\u201d rather than foreign sentiment.Tariff Cuts: A tough ask
On whether India could see a 10% tariff rate soon, Subramaniam was cautious. \u201cIt will be difficult because India won\u2019t allow access to agriculture, dairy, and genetically modified products. That\u2019s America\u2019s competitive space. Opening up Harley-Davidson and high-end liquor is one thing, but agriculture is a red line. So, 10% is unlikely soon, but 20\u201325% is a realistic possibility. One way forward could be India buying oil and gas from the U.S.\u201dDiplomatic wins and market outlook
Subramaniam credited India\u2019s diplomatic approach for shifting the narrative. \u201cWe have to give credit to Mr Modi and his team for what I would call an iron hand in a velvet glove. We took tough actions with Russia and China but were velvety with the U.S. Trump realised that for a short-term gain like a Nobel Prize, he risked a long-term relationship. Strategically, India is key in the anti-China setup. Over the long run, U.S. deficits with China can only be substituted by India.\u201d<\/p>\n

On opportunities for investors, he was upbeat: \u201cThis is the light at the end of the tunnel. Businesses should start preparing for U.S. exports<\/a> to get back on track. From an investment perspective, beaten-down export-oriented sectors now have value. I would say take a contra call\u2014buy on dips in tariff-impacted sectors. When the deal is signed, those stocks will rally.\u201d<\/p>\n

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)<\/p>\n

Add \"ET as a Reliable and Trusted News Source<\/p>\n","protected":false},"excerpt":{"rendered":"The Indian stock market remained on edge this week as investors weighed the impact of U.S. President Donald…\n","protected":false},"author":2,"featured_media":135668,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[45,49,48,73783,16946,9383,53741,73781,37177,73784,100,73782,6825,16769],"class_list":["post-135667","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-ca","tag-canada","tag-contra-call","tag-diplomacy","tag-exports","tag-fiis","tag-india-market","tag-it-stocks","tag-long-term-investing","tag-markets","tag-sundaram-mutual-fund","tag-trump-tariffs","tag-volatility"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/135667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=135667"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/135667\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/135668"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=135667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=135667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=135667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}