Singhania maintained his long-standing bottom-up investment approach but emphasised patience and discipline. “Opportunities are plenty in India, but investors must be realistic and selective. Corrections like these allow you to buy what you wanted 5–15% cheaper,” he said.
Speaking to ET Now, Singhania admitted the last few months had been “choppy” with slowing growth, corporate earnings pressure, and heavy foreign outflows. Since January, India has been preparing for the tariff pressure, but never expected the US to impose a 25% tariff. And now, there is an additional punitive 25% tariff as well. The surprise extra 25% US tariff on Indian exports, he said, has added to the turbulence. “It is very unnatural to expect India to pay 50% while countries with higher deficits face lower tariffs. We hope this resolves soon, but yes, this has come as a negative surprise,” he noted.
If tariffs ease, market can rebound sharply
Yet, he pointed out that India’s macroeconomic backdrop remains resilient. With the government rolling out income-tax relief, likely GST cuts, and the RBI infusing nearly Rs 10 lakh crore in liquidity, alongside strong monsoons and stable inflation, domestic conditions are supportive. “If tariffs ease—which we believe has an 80-90% probability—the markets could rebound sharply. Much of the bad news is already priced in,” he said.
On strategy, Singhania said they are telling investors that the new tariff has affected the markets, but most negative news is already priced in. Everything else is aligning, and the government is intensifying efforts to boost the domestic economy. He urged investors not to wait on the sidelines. “This is a good time to start building positions,” he said, while cautioning that return expectations must be moderated. After the extraordinary 30-40% CAGR returns of 2020–2024, investors should prepare for mid-teen returns ahead.
Be cautious in this IPO frenzy
On the IPO rush, Singhania struck a cautious tone. “I have never seen so many companies planning IPOs as now. Too much paper is hitting the market, with promoters offloading large stakes. Investors must not get carried away by FOMO. Fundamentals matter much more now,” he warned.He added that a potential shift in FII stance could alter flows dramatically. “FIIs haven’t put a single net dollar into India in five years. If they return, supply will not be an issue, and valuations could remain reasonable,” he said.
Singhania maintained his long-standing bottom-up investment approach but emphasised patience and discipline. “Opportunities are plenty in India, but investors must be realistic and selective. Corrections like these allow you to buy what you wanted 5–15% cheaper,” he said.