'Indian market doing much better than expected': Arun Kejriwal; fears US inflation may rise

Renowned market expert Arun Kejriwal believes the Indian market is doing much better than expected. "Investors are not panicking. I'm referring to those new investors who have joined post-Covid. There is no panic from them and the urge they must trade every day also seems to be missing today, which is very positive for our market. Pharma has typically been known as the defensive sector. When you don't know what to do with your money and you want to continue being invested in the market, the go-to sector used to be pharma. Textiles is the other sector which looked positive," the market expert told Business Today on Thursday.

On a broader scale, he said, "India started making India program about four to five years ago. I believe the time is now coming when we will be able to capture this moment. As a result of what has been announced by US President Donald Trump, the Indian manufacturing platform could go the world over as people look to readjust their purchases and sales in view of what has started as a tariff global war."

Over the next 12-18 months, Kejriwal mentioned that stock picking would be more of a domestic exercise.

Throwing light on the aftermath of Trump's tariff strike, the market expert said, "Inflation is now going to rise in America. The dividing line between inflation, stagflation and recession is fairly thin. So, I believe things could be worse off for America as the rest of the world. It means that global markets need to find replacement for all the money that was flowing into America because the economy was roaring and it need not be the same going forward. There would be a flight of capital from the global markets in America to some other countries. If we are able to get our act together, valuation tends to improve. If we stop being sentimental about valuations, this could be a great time for stock booking in our country."

He suggested that the BFSI (Banking, financial services and insurance) sector may see fresh money flow, adding that the real estate space could also see investment opportunities. "Prices of real estate are cooling. Therefore, it is not inventory-led growth that will drive the company but delivery. Just execution, handing over projects and churning out real estate flats are some of the areas where one could see traction in the coming months," he underscored.

The market specialist also shared his top stock picks from the banking space. He said, "When you talk about the banking space, you have to go with the leaders. ICICI Bank, Kotak Mahindra Bank and HDFC Bank, which form a large part of your Nifty basket, would be the top picks. In PSU banks, State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda and Canara Bank would be the selected plays."

Meanwhile, Indian equity benchmarks were last seen trading in negative territory today after US President Donald Trump imposed reciprocal tariffs on its trading partners, including India.