No Tariff Impact Likely On Markets

Motilal Oswal Group Chairman Raamdeo Agrawal believes the Indian stock market may not face major setbacks from US tariffs if a trade agreement between India and the US is reached within the next two months. Speaking to CNBC-TV18 on August 28, just after the imposition of an additional 25% tariff on Indian imports, he said that once a deal is finalized, the market impact can be reassessed, noting that trade dynamics have their own course.

Agrawal emphasized that market sentiment is influenced not only by bilateral trade but also by India’s growing economy and the government’s robust reform agenda. He highlighted that earnings will be the key market driver, and if a deal materializes soon, tariffs may have little effect on earnings. He also expects substantial inflows of nearly Rs 7 lakh crore from domestic institutional investors this year, indicating strong buying interest.

With government reforms like the GST overhaul and the country’s large domestic consumption base supporting growth, Agrawal sees this as a good time to accumulate shares despite the US tariff challenges, which could ultimately push for a favorable trade resolution and boost domestic demand.