Sensex stages shaky 1,000-point comeback: How savvy investors can build a Trump-tariff-proof portfolio

 Sensex stages shaky 1,000-point comeback: How savvy investors can build a Trump-tariff-proof portfolio
Sensex stages shaky 1,000-point comeback: How savvy investors can build a Trump-tariff-proof portfolio
By , ETMarkets.comLast Updated: Apr 08, 2025, 10:48:00 AM IST
After a market plunge fueled by tariff fears in the last 3 days, Sensex and Nifty rebounded on Tuesday, offering a temporary respite. Experts advise investors to focus on domestic sectors like FMCG and financials, which are less exposed to global trade tensions. Despite market volatility, India's strong economic fundamentals provide a buffer, suggesting a strategic shift towards local, liquid, and long-term investments.
stock market impact trump tariff
While the stock markets are bleeding, the sharp money is already on the move. The street’s seasoned voices are aligned: go domestic, go defensive, and above all—stay razor sharp.
After three gut-wrenching days that saw the Sensex nosedive 3,500 points and the Nifty lose a nerve-jangling 5%, Tuesday finally brought some relief—if only just a breather in what’s still a bruising battle. Sensex rebounded over 1,000 points while Nifty reclaimed 22,500 level amid a relief rally in global markets.

But hold the champagne—because the ghost of fresh U.S. tariffs is still lurking in the background. Global investors remain on edge, parsing every word out of Washington like it's the Fed whispering rate cuts. Charts lie in shambles, support levels are breaking like brittle biscuits, and fear has firmly set up camp on Dalal Street. “It’s a minefield out there,” grumbled one trader, eyes fixed on screens. The bounce may have come—but the threat hasn't left the building.

Donald Trump’s new tariff threats have reignited fears of inflation, rattled global supply chains, and raised fresh concerns about retaliatory moves from trade partners. Economists are already warning of a global demand shock that could shave 75 to 125 basis points off global economic growth in 2025 and now BlackRock CEO Larry Fink has warned that stock markets could fall 20% farther as steep US tariffs lead some investors to believe the US economy may already be contracting.

But while the markets are bleeding, savvy investors are starting to rotate. The consensus among market veterans? Get domestic. Get defensive. Get sharp.

Also read | Sensex, Nifty crash worst since 2024 Lok Sabha debacle. What to do when the market turns into madhouse

Arvind Kothari, smallcase manager and founder of Niveshaay, believes that investors should shift their lens to India's own economic engine. While it's difficult to predict which sectors will bounce back first, he says domestic-focused areas like FMCG and consumption appear far better placed in the current environment. Export-heavy or globally exposed sectors might lag, especially with trade clarity still some distance away. He sees this turbulence as a potential setup for the next growth cycle and says staying invested in fundamentally sound businesses could lead to long-term wealth creation.

Explaining the impact of an abrupt and dramatic rewriting of global trade rules by US President Trump, Sandeep Bagla, CEO, TRUST Mutual Fund, said growth will slow down as people postpone critical decisions till greater clarity emerges.

“Tariffs are potentially inflationary as well margin compressive. It is prudent to remain put and let the storm pass. There could be many winners that come out due to the impending disruptions. It is better to keep the powder dry. One can invest in equities through steady STPs. One should follow strict asset allocation between fixed income and equities. Only long term surpluses should go to equities. Fixed income funds like short term funds provide reasonable safety and return tradeoffs,” he told ETMarkets.

Robin Arya, founder and CEO at GoalFi, is urging investors to use this period not as a trigger for retreat, but for review. According to him, sectors with strong domestic fundamentals — financials, FMCG, and infrastructure — stand to benefit the most from India’s ongoing structural momentum. These businesses have low global exposure and are supported by internal consumption, fiscal policies, and infrastructure investments. In Arya’s words, markets may be uncertain, but your strategy doesn’t have to be.

Karthick Jonagadla, founder of Quantace Research, is betting big on a quartet of sectors: private banks, FMCG, oil marketing companies (OMCs), and paints. He believes these spaces are quietly setting up for a strong rebound once macro conditions stabilize.

Also read | Are bank stocks bullet-proof in a tarrif-ied world? FII’s $2 billion bet says so

Private banks, he points out, are riding a credit growth wave that has picked up from 11% to around 13–14%. With another round of 25 basis point rate cut expected as early as tomorrow and improved liquidity conditions in the pipeline, net interest margins are likely to expand. Private sector lenders, especially those with healthy deposit flows and strong asset quality, could deliver sustainable ROIs in the range of 15–17%.

Financials are also on FIIs’ favourite list as March month data shows that foreign investors bought Rs 14,274 crore worth of financial services stocks in the month, even as they sold nearly Rs 4,000 crore worth of Indian equities overall in March.

FMCG companies, on the other hand, stand to benefit directly from declining crude oil prices. As input costs ease and inflation cools, these businesses could see margin expansion alongside solid consumer demand. A similar dynamic is playing out in the paints sector and OMCs—both of which are extremely sensitive to oil prices. With crude in correction mode, earnings visibility for these names has significantly improved.

Market insiders are increasingly echoing a “Made in India” strategy. Export-oriented IT, pharma, and chemicals may take longer to recover, especially with U.S. and European growth slipping under the weight of protectionist policies. But domestic-facing themes—where the runway remains long and underpenetrated—are quietly regaining favor.

Some fund managers are also pointing to opportunities in capital goods and infrastructure. With the Indian government maintaining a steady fiscal push into roads, rail, and renewable energy, order books across industrial companies are looking healthier than ever. As the capex cycle gains steam, earnings in these sectors could surprise on the upside.

Auto and auto ancillaries are another basket seeing early interest. A potential rate cut cycle could boost vehicle affordability, while softer commodity prices may improve margins across the board. Rural recovery, too, could act as a tailwind over the next few quarters.

Midcap financials, particularly select NBFCs and insurance players with strong distribution and digital moats, are also starting to show resilience amid the broader chaos.

An equity strategist with a Mumbai-based brokerage summed it up aptly: this kind of volatility isn’t new, it’s just showing up at an inconvenient time. But unlike past global sell-offs, India enters this one with far stronger macros—moderate inflation, a robust banking system, steady GST collections, and a government that continues to spend.

The bottom line? This may be a storm, but it isn’t one without shelter. The investors who win from here won’t necessarily be the fastest or the flashiest—they’ll be the ones who bet on India’s core strengths, trim the fat, and ride out the noise.
Stay local. Stay liquid. Stay long.

Because in this game of tariffs and tremors, the ones who look beyond the red are the ones who’ll end up in the green.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times)
Read More News on

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...more

Stories you might be interested in

Company Logo
Privacy Preference Center
When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.
Manage Consent Preferences
Targeting Cookies

These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
Functional Cookies

These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.
Performance Cookies

These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.
Strictly Necessary Cookies

These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.

http://journal.gouni.edu.ng/files/journals/2/articles/8480/submission/8480-1-9540-1-2-20250402.html
https://www.aun.edu.eg/fci/sites/default/files/research_project/start-making-money-with-tashan-win-login-today.pdf
https://ucgp.jujuy.edu.ar/profile/taramclean/
https://www.ojs.kmutnb.ac.th/index.php/jote/comment/view/4797/0/4697
https://escuelageneralisimo.edu.pe/lms-user_profile/17514
https://www.egresadosudistrital.edu.co/virtualcourses/forums/topic/tashan-win-login-bonus-start-earning-today
http://www.monofeya.gov.eg/citizens/cases/Lists/List38/DispForm.aspx?ID=109398
http://idb.uwu.ac.lk/discussion/detail/394526
https://files.hcuc.edu.gh/participant/devoncrump/
http://publicacoesacademicas.unicatolicaquixada.edu.br/index.php/recsaude/comment/view/19/0/2171587
https://elearning.southwesternuniversity.edu.ng/members/alschwartz/activity/112507/
https://www.uniatlantico.edu.co/profile/summermccoy/
https://www.iteandes.edu.co/author/emoryotto/
https://www.colmayor.edu.co/foro/profile/kathlyneaton/
https://triumph.srivenkateshwaraa.edu.in/profile/noahavery
https://tmis.mcpmed-ti.edu.eu/participant/jasonheard/
https://rciims.mona.uwi.edu/user/sammaynard
https://www.iteandes.edu.co/author/janicejernigan/
https://www.colmayor.edu.co/foro/profile/colethacker/
https://elearning.southwesternuniversity.edu.ng/members/colethacker/activity/112535/
https://www.storeboard.com/blogs/crafts/wengtoto-situs-toto-online-teratas-untuk-penjudi-yang-menang/6137515
https://businessproonline.mystrikingly.com/blog/kiat-kiat-menang-wengtoto-panduan-lengkap-untuk-sukses
https://ajitblog.bloggersdelight.dk/2025/04/06/menjelajahi-wengtoto-fitur-aksesibilitas-teratas-untuk-pemain/
https://experiment.com/users/ccoreycompton
https://chartres.onvasortir.com/profil_read.php?Marcoknutson
https://ca-riverside-acr.publicaccessnow.com/ActivityFeed/MyProfile/tabid/24/UserId/25500/Default.aspx
http://dayawane.ihep.ac.cn/twiki/bin/view/Sandbox/Wengtoto:20Pengalaman20Situs20Toto20Online20Pilihan20Anda
https://community.stencyl.com/index.php?action=profile;u=1272658
https://imageevent.com/elbertstiles/wengtotositustotoonlineterkemukaun
https://www.divephotoguide.com/user/bentongallagher
https://barratts.co.uk/author/mirtaoakes/
https://wayranks.com/author/dennisphipps-805310/
https://pub37.bravenet.com/forum/static/show.php?usernum=3172289350&frmid=7238&msgid=1550738&cmd=show
https://noosfero.ufba.br/claudineflanagan/blog/ungkap-rahasia-kemenangan-dengan-wengtoto-panduan-penguasaan
https://telegra.ph/Kuasai-Wengtoto-Kiat-untuk-Menang-di-Situs-Toto-Online-04-06
https://www.tapatalk.com/groups/techseo/viewtopic.php?f=2&t=12303&from_new_topic=1
https://slatestarcodex.com/author/leesayates/
https://www.oureducation.in/answers/profile/collinhorton/
https://journal.embnet.org/index.php/embnetnews/comment/view/49/154/6328
http://journal.gouni.edu.ng/files/journals/2/articles/8492/submission/8492-1-9552-1-2-20250403.html
https://www.aun.edu.eg/fci/sites/default/files/research_project/miya4d-slot-hiburan-digital-yang-menguntungkan.pdf
https://ucgp.jujuy.edu.ar/profile/jameychaney/
https://www.ojs.kmutnb.ac.th/index.php/jote/comment/view/4797/0/4703
https://escuelageneralisimo.edu.pe/lms-user_profile/17538
https://www.egresadosudistrital.edu.co/virtualcourses/forums/topic/kesempatan-besar
http://www.monofeya.gov.eg/citizens/cases/Lists/List38/DispForm.aspx?ID=109602
http://idb.uwu.ac.lk/discussion/detail/395251
https://files.hcuc.edu.gh/participant/ricardoscott/
http://publicacoesacademicas.unicatolicaquixada.edu.br/index.php/recsaude/comment/view/19/0/2174161
https://elearning.southwesternuniversity.edu.ng/members/jacquesmccracken/activity/112664/
https://www.uniatlantico.edu.co/profile/myrticedoyle/
http://www.iteandes.edu.co/author/beaosborn/
https://www.colmayor.edu.co/foro/profile/liseholt/
https://triumph.srivenkateshwaraa.edu.in/profile/albaortiz
https://tmis.mcpmed-ti.edu.eu/participant/raymundovaughn/
https://rciims.mona.uwi.edu/user/dottiekramer
https://elearning.southwesternuniversity.edu.ng/members/mauricefenton/activity/112673/
http://www.iteandes.edu.co/author/melonygillespie/
https://www.colmayor.edu.co/foro/profile/hortenciagallagher/
https://deloreshouston.amebaownd.com/posts/56601125
http://edgardocoon.parsiblog.com/Posts/2509/
https://www.bolognafc.it/members/juniorflood/info/
http://www.fanart-central.net/user/elmaaskew/profile
https://makeprojects.com/profile/lamaredmonds
https://www.fitday.com/fitness/forums/members/elnoramunson.html
https://hearthis.at/group/476000/kenyattahogue/
https://wallhaven.cc/user/carriehoyt
https://kumu.io/christelblanton/christelblanton#untitled-map
https://app.roll20.net/users/15901892/marcelina-m
https://photoclub.canadiangeographic.ca/profile/21558132
https://www.facer.io/user/6pn0PESi0D
https://myapple.pl/users/509516-sherrieriley
https://www.dualmonitorbackgrounds.com/rosiepurcell
https://connects.ctschicago.edu/forums/users/214997/
https://www.ilcirotano.it/annunci/author/nicholebrowning/
https://www.socialwider.com/profile-1452503/info/
https://www.telix.pl/profile/karolynjacobs/
https://www.japaaan.com/user/41361
http://poster.4teachers.org/worksheet/view.php?id=189929
https://dailybusiness.seesaa.net/article/513463040.html?1743662429
https://promosimple.com/ps/34325/rasakan-sensasi-dan-bonus-berlimpah-di-slot-miya4d
https://cannabis.net/user/173894
https://www.abclinuxu.cz/lide/collinestrada
https://ajitblog.bloggersdelight.dk/2025/04/03/rasakan-hadiah-menyenangkan-di-slot-miya4d-yang-mudah-digunakan/
https://www.ledonline.it/public/files/journals/3/articles/7112/submission/original/7112-18082-1-SM.html
https://catalogue.d4science.org/user/beckyrodriquez
https://data.trca.ca/user/paulinareece
http://dados.ufop.br/en/user/laurenceadams
https://datos.estadisticas.pr/user/nellemeeks
http://data.waterpathogens.org/user/elvinjamison
https://www.ebluejay.com/feedbacks/view_feedback/sondraalbright
https://bootstrapbay.com/user/deannehoward
https://www.fantasyplanet.cz/diskuzni-fora/users/tamimanley/
https://www.postcolonial.org/index.php/pct/comment/view/2768/0/2750
https://noumea.urbeez.com/profil_read.php?Douglasavery
https://catalogue.d4science.org/user/scottyleal
https://data.trca.ca/user/chandratobin
http://dados.ufop.br/en/user/reinarobinson
https://datos.estadisticas.pr/user/ianromano
http://data.waterpathogens.org/user/mellisachildress
http://www.fanart-central.net/user/maxisaac/profile
https://makeprojects.com/profile/herschelford
https://www.fitday.com/fitness/forums/members/jewellhayes.html
https://hearthis.at/group/476033/paulbrewer/
https://wallhaven.cc/user/billieromano
https://kumu.io/ahmadfischer/ahmadfischer#untitled-map
https://app.roll20.net/users/15902277/scarlett-m
https://photoclub.canadiangeographic.ca/profile/21558328
https://www.facer.io/user/IduxwOzYCg
https://myapple.pl/users/509573-soniacarlson
https://www.dualmonitorbackgrounds.com/samualcano
https://www.telix.pl/profile/burlcarrier/
https://www.japaaan.com/user/41365
https://www.abclinuxu.cz/lide/cliffcastillo
http://journal.gouni.edu.ng/files/journals/2/articles/8524/submission/8524-1-9586-1-2-20250405.html
https://www.aun.edu.eg/fci/sites/default/files/research_project/wengtoto-pusat-game-slot-dari-penyedia-terbaik.pdf
https://ucgp.jujuy.edu.ar/profile/hongmora/
https://www.ojs.kmutnb.ac.th/index.php/jote/comment/view/4797/0/4726
https://escuelageneralisimo.edu.pe/lms-user_profile/17603
https://www.egresadosudistrital.edu.co/virtualcourses/forums/topic/wengtoto-merevolusi-dunia-perjudian-daring
http://www.monofeya.gov.eg/citizens/cases/Lists/List38/DispForm.aspx?ID=109973
http://idb.uwu.ac.lk/discussion/detail/396724
https://files.hcuc.edu.gh/participant/jamelcastillo/
http://publicacoesacademicas.unicatolicaquixada.edu.br/index.php/recsaude/comment/view/19/0/2178914
https://elearning.southwesternuniversity.edu.ng/members/deandrecorley/activity/113006/
https://www.egresadosudistrital.edu.co/virtualcourses/forums/users/alfredasharp
https://www.uniatlantico.edu.co/profile/gayleschaefer/
https://www.iteandes.edu.co/author/lonnywooten/
https://triumph.srivenkateshwaraa.edu.in/profile/candiparrish
https://tmis.mcpmed-ti.edu.eu/participant/bethdarby/
https://rciims.mona.uwi.edu/user/kristanstarr
http://ambar.utpl.edu.ec/user/lynnbloom
https://dados.ifrs.edu.br/user/kerriemelendez
https://data.kr-rada.gov.ua/user/francesgriffith
https://phuket.mol.go.th/forums/users/myrnaward
https://pioneercampus.ac.in/forums/users/candancebloom/