Experts Split on Market Bottom as India Remains a Bright Spot Amid Global Tariff Worries

Investments Indian Investments

Posted by NewAdmin on 2025-04-08 08:54:18 |

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Market sentiment remains sharply divided as global uncertainties, especially around Donald Trump’s tariff rhetoric, continue to weigh on investors’ minds. According to a Moneycontrol Market Poll conducted on April 8, while there’s a cautious undercurrent due to the global tariff threats, optimism around domestic fundamentals is helping to balance the scales. The poll, which included insights from 18 experts across mutual funds, portfolio management services, family offices, and brokerage firms, reflects a market in search of direction.

A significant portion of the participants—50 percent—admitted they were unsure whether the market has truly bottomed out, signaling the prevailing ambiguity. Only a minority, about 16.7 percent, believed the bottom has already been made, while an equal number disagreed, suggesting more downside might still lie ahead. Interestingly, some even forecasted a potential 10 percent decline in 2025, pointing to the fragility in market confidence.

Despite these doubts, liquidity management remains a key theme. Nearly 39 percent of respondents are holding over 20 percent of their portfolio in cash, reflecting a defensive stance. On the flip side, the majority—around 83 percent—expressed intent to deploy more capital into equities in the near term. This suggests that many see the current volatility as a potential buying opportunity rather than a sign of deeper troubles.

The Nifty 50 index is largely expected to close the year between 22,000 and 24,000, with two-thirds of the respondents aligning with this view. This represents a moderate downgrade from more bullish expectations earlier in the year but still indicates resilience in the market’s outlook. Notably, none of the experts anticipate the index to fall below 18,000, hinting at a perceived floor in valuations.

On the sectoral front, consumption remains the standout theme. Both FMCG and consumer discretionary stocks were rated highly by 44.4 percent of respondents, followed closely by interest in energy and consumer durables. Despite global headwinds, Indian investors appear more focused on domestic growth drivers and remain cautiously optimistic about medium-term prospects.

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