📰 Introduction
On 29 August 2025, Indian equity markets continue navigating choppy waters. Rising U.S. tariffs, cautiously optimistic global cues, and a stabilizing RBI are the key forces shaping sentiment today. Investors, especially the ‘desi’ ones, are weighing opportunities in Auto and IT while keeping one eye on RBI’s growth outlook.
🌍 Global Cues & Tariff Fallout
U.S. imposed 50% tariffs on select Indian exports—shaking sentiment and causing export-heavy sectors to buckle. Still, markets expect a rebound due to India’s domestic resilience and easing inflation expectations (Reuters).
🇮🇳 RBI Perspective & Policy Stability
The RBI has maintained a balanced stance: clearly acknowledging tariff-related risks, yet confident that growth remains on track in the near term (Times of India).
🚗 Sector Spotlight: Auto & IT Opportunity
UTI AMC’s V. Srivatsa recommends staying in equities, noting that sectors like Auto and large-cap IT are “ripe for opportunities” given structural demand drivers—adding a healthy dose of optimism to market fear (ET).
📈 Medium-Term Outlook — McKinsey’s View
McKinsey’s Vivek Pandit cautions that India needs a U.S. trade deal to sustain its high-growth ambitions. Yet, he also sees huge upside—$1.7–2 trillion gains from sectors like auto components and semiconductors—which could well propel India’s GDP to an even stronger path (Financial Times).
💡 What Can Investors Do?
- Short-Term Traders: Monitor Auto & IT gainers; keep stops tight.
- Medium-Term Investors: Use tariff-induced dips to accumulate structurally strong names.
- Long-Term Investors: This is a buying opportunity in quality equities, as domestic demand and policy reforms provide tailwinds.
❓ Frequently Asked Questions (FAQ)
- Q1. Will U.S. tariffs derail India’s market momentum?
A. In the near term, sectors like textiles and exports feel pressure, but domestic demand—especially in Auto and IT—provides counterbalance. - Q2. Is the RBI concerned about growth in light of tariffs?
A. RBI acknowledges risks but maintains that economic growth remains intact. - Q3. Which sectors offer the best risk-reward today?
A. Auto and large-cap IT appear promising, according to market strategists. - Q4. How soon can India recoup from tariff impact?
A. Medium-term structural strength and reforms could lift investor sentiment within 12–18 months.
✅ Conclusion
29 Aug sees the Indian market balancing between external pressure and internal resilience. While tariffs rattle the export-heavy segments, RBI’s steady outlook and domestic demand—especially in Auto & IT—provide a strong foundation. Investors should recognize the dip as a potential long-term entry point, rather than a new low.