“I’m not sure you want to have knee-jerk reactions in terms of changing a lot in your portfolios,” Seth said, adding that exposure should be reduced only in sectors directly vulnerable to tariffs.
On foreign investor flows, Seth believes the worst of the selling is over and that “you will see stabilisation in FII flows once the initial knee-jerk reaction is over.”
He also stated a global shift toward currency diversification, saying the US dollar’s status as reserve currency is not under threat, but “the incremental allocation is slowing down.”
Also Read: ‘You may as well not have a business’ says Baba Kalyani on 50% US tariff
Despite near-term headwinds, Seth stressed that India’s structural growth story remains intact over the next one to two decades. He continues to favour domestic-focused sectors such as financials and consumption, while urging a rethinking of the export mix toward new products and markets to offset any trade-related weakness.
Also Read: Economists urge reforms and targeted support as India faces GDP hit from US tariffs
For the entire interview, watch the accompanying video
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(Edited by : Unnikrishnan)
