Mkt complacent; further 25% US levy 'pure hypocrisy': Nilesh Shah

The "collective wisdom" of the market still believes that the long-term interests of India and the US are aligned and US President Donald Trump's tariffs are more of a posturing exercise, said Nilesh Shah, managing director of Kotak Mahindra AMC, in a telephone interview with Puneet Wadhwa. For long-term investors, corrections are opportunities to add, he said. Edited excerpts:

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Do you think the market has reacted the way it should have to the tariff-related events?

I believe the market is still a bit complacent on tariffs and thinks this is just a short-term tactic [by the US] that will be sorted out soon, which is why the reaction has been muted. But if tariffs remain for a longer period or escalate in some form, then the markets will correct.

Some expected some resolution, or at least a partial relief before August 27 but that hasn't happened. How long can markets remain patient?