“While tariff talk has created noise, our exposure is small. Even in the worst case, the impact won’t exceed 70–80 bps of GDP. Meanwhile, India is diversifying trade — with the UK free trade agreement signed recently and stronger ties with Europe, China and BRICS members. This creates more opportunities than challenges,” Saboo explained.
The tariff overhang may actually be paving the way for way better situations. Most of the countries affected by the tariffs are starting to unite again, with BRICS—Brazil, Russia, India, China, and South Africa—coming back together. Once connections are strengthened, India won’t be relying on or depending on just one country.
Saboo stressed that government initiatives are equally critical in supporting growth. “The GST rationalisation and several economic measures being planned show how proactive the government is. Domestic consumption and manufacturing are being positioned as buffers. Strong inflows of ₹43,000 crore into mutual funds last month also underline resilient domestic flows,” he added.
India’s combination of policy support, resilient domestic demand, and attractive sectoral opportunities make the market well-positioned despite global uncertainty.
Market Valuations
On valuations, Saboo remained upbeat: “At 18x one-year forward earnings or 16.5x two-year forward, markets are super attractive. This correction is a healthy entry point.”
Turning to sectors, Saboo was optimistic about IT, dismissing concerns that artificial intelligence (AI) could permanently disrupt the industry. “We have seen this fear before — during Y2K, during the cloud transition. Each time Indian IT adapted and came out stronger. Today, AI is another such opportunity. Deal wins are already coming in,” he said.
With IT majors trading below their 10-year average multiples, Saboo believes the risk-reward is compelling. “Infosys, TCS, Wipro — these are world-class cash-generating businesses available at 17–19x earnings. At these levels, they’re must-buys,” he emphasised.