Recent market volatility a learning curve for new investors

President Donald Trump's tariffs have been keeping stock markets on tenterhooks in the past few months.

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However, Balasubramanian, managing director and CEO, Aditya Birla Sun Life AMC, believes foreign portfolio investors should make a comeback into Indian markets from June. He tells Tanya Grover that while current volatility will continue, the incremental impact will be restricted. Excerpts:

Current volatility in the market is worrying. How do you read the situation?

In India, the entire market, including us, is of the opinion that valuations remain stretched. The reasons are lack of government spending in the first half of this year, leading to a fall in the GDP; and RBI tightening the credit growth, adding to the slowdown in the overall growth momentum; and global volatility, which wasn't there for quite some time, has come back after Trump started making a lot of noise over tariffs. While nothing concrete has emerged so far, the market does not like uncertainty, especially on policy framework, growth uncertainty and decision-making. The current volatility will stay, but given the fact that the market has corrected quite a lot, the incremental impact of uncertainty would get restricted.

How will Trump tariff decisions impact the market?