FY26 Could Be Constructive for Foreign Flows Into India

US President Donald Trump on April 9 announced a 90-day pause on his sweeping tariffs on all countries, with the exception of China. Trump's announcement "provides temporary relief" but does not end uncertainty, said Pranav Haridasan, managing director (MD) and chief executive officer (CEO) of Axis Securities, in an email interview with Devanshu Singla. Edited excerpts:

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How do you view the 90-day pause on US tariffs and its impact on Indian markets?

The 90-day pause on new US reciprocal tariffs provides temporary relief but does not eliminate the uncertainty. The 10 per cent uniform tariffs are still in effect, and retaliation from China suggests that we are far from resolution. While India may not be directly impacted, we are seeing ripple effects.

Export-heavy sectors like IT (information technology), pharma, and autos will have to navigate this carefully as their guidance, margins, and deal flow could come under some pressure if global growth softens further.

However, the China-Plus-One narrative could offer a long-term advantage to India.

Given this, domestic-facing sectors like consumption, banks, and infrastructure are better insulated. We remain neutral to underweight on IT, at least in the near-term, till the fog lifts on outlook.