As D-Street Bleeds, Market Veteran Deven Choksey Says 'India Will Emerge Strong'

Stock Market Today: The Indian Bourses plunged on Tuesday, with the benchmark Sensex falling by 1,390 points due to selling in IT and private bank shares amid increased uncertainty ahead of the US's launch of retaliatory tariffs on April 2.
     
Starting the new financial year on a losing note, the 30-share BSE Sensex fell 1,390.41 points, or 1.80 per cent, to 76,024.51, as 28 of its components closed lower and only two improved.  During the day, the index dropped 1,502.74 points, or 1.94 per cent, to 75,912.18. The NSE Nifty lost 353.65 points, or 1.50%, to 23,165.70.

What Market Expert Said?

As D-Street experiences turbulence, market veteran Deven Choksey provides a beacon of hope, emphasizing India's strength in navigating challenges posed by global trade dynamics and geopolitical uncertainties.

"When India reduces their tariffs, direct impact on trade with the USA will be minimal as USA product and services costs are way above the economic rational prevalent in India today," Choksey remarks, highlighting the limited consequences of tariff reductions on bilateral trade.

He also touches upon the indirect implications of sanctions imposed by the USA on certain countries, stating, "Indirect impact of USA putting sanctions on some of the country is still not certain. So it is best we let the clarity to emerge." While uncertainties loom, Choksey suggests that patience is key to understanding the broader impact.

China’s ability to dump surplus goods at low prices is another factor to watch. "Except China, who can indeed dump their excess/surplus productions in the world for a throwaway price in the situation of inventory glut clearance," he observes.

However, he reassures that this effect will likely be temporary: "China dumping their goods may well be a temporary impact, maybe for a couple of quarters."

India Emerging Strong

Choksey envisions India emerging strong amidst these global challenges. "I think India will emerge very strong in the given challenge as we indeed have a cheaper cost of products and services, and it could also attract lots of buyers and investors to India," he asserts.

Economic indicators further bolster optimism. With crude oil prices declining, commodity costs stabilizing, and the Indian Rupee strengthening slightly against the Dollar , inflation is expected to ease. "Given the fact that crude oil is/will be down, commodities don, currency Rupees to Dollars will inch up by a 1% or so, and due to which the inflation coming down, leading to fall in interest rates," Choksey elaborates.

He distils the positive outlook into a concise framework: "These 3 Cs—crude, commodities, and currency—and 2 Is—inflation and interest rates—are going to be extremely positive for us eventually."

Choksey advises investors to remain focused and look beyond the immediate noise. "Keep the noise of 2 April aside to grab the advantage it is bringing up for investors and India," he urges.

Disclaimer: The views expressed in this article are purely informational and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds