Despite tariffs remaining in place, India's exports to the United States have shown a pickup since September, while sectors that were expected to be hit harder by tariffs have not underperformed as sharply as those considered relatively insulated, according to a data based report by DSP Mutu
The domestic equities are expected to deliver a resilient performance over the medium term of 6-24 months, supported by a broad-based recovery in earnings, strong domestic demand and continued policy support, according to a report by PL Capital.
The two-wheeler (2W) segment, however, could see some relief as weak domestic demand may be offset by stronger export recovery. Meanwhile, the tractor industry, projected to grow at 7 per cent y-o-y, may witness an upside if healthy demand traction continues.
India's export recovery may encounter challenges due to softening demand in developed markets, the Ministry of Finance in its monthly report said on Monday.
The widening trade deficit poses a concern, especially with the U.S. imposing higher tariffs on Chinese imports, potentially leading to a surge in Chinese exports to Asian markets, including India.