The story of India’s structural development remains intact, but faces near -headwind: Market Analyst Bhawna Chhabra – CNBC TV18

According to Bhawan Chhabra, senior market analyst at Rosenburg Research, recent global trade tensions were provoked by new mutual tariffs, India’s long -term economic development possibilities remain strong.

In an interview with CNBC-TV18, Chhabra admitted that while India is not immune for these global development and faces possible challenges in the short term, its fundamental development story is still positive. He said, “India has been one of our most favorable calls in the last few years. Yes, there are speed bumps on the road too.”

Chhabra said that in India’s economy, the direct effect of goods tariffs is a degree of insulation as its dependence on goods exports compared to other major exporting countries is relatively low. In addition, India’s strength lies in the export of its services, which are directly affected by these tariffs.

For investors looking at India, Chhabra suggested that the financial sector appears promising due to its domestic focus. Additionally, interest rates are expected to cut interest rates with the Reserve Bank of India (RBI), Indian bonds can also offer an attractive opportunity.

Turning to the United States, Chhabra portrayed a more cautious picture. They believe that new trade obstacles will contribute to trade, which will negatively affect the increase in income for American companies and eventually push markets less. He also highlighted the “multiplier impact”, where consumer expenses from a falling American market may be reduced, can weaken the business to work and weaken the economy.

Despite the recent reforms in the US stock market, Chhabra argued that the evaluation is still high compared to the historic average, suggesting that there may be a more negative side to arrive. In this atmosphere, she recommends “flying to security” for investors, which favors American Treasury and Gold. Within the equity market, she suggests focusing on defensive areas such as utilities and consumer staples, while being cautious about consumer discretionary stocks.

Looking forward, Chhabra estimates that business will remain likely to be uncertain. He said, “Uncertainty is a hallmark of Trump administration. If we remember, Trump 1.0 was not very different. I think it is a big and more loud version that we saw in Trump 1.0. Therefore, we expect to continue uncertainty.”

Watch the video together for full interview.