Category: News

Fifteen years ago, a big company borrowed money by selling bonds at a fixed interest rate of X%. A smaller company, on the other hand, had to pay X% plus an extra 2%. This made it costlier for the smaller company to get money, which was a big disadvantage for them.

But today, both the big company and the smaller company are borrowing money at the same rate of X%. Why? Because it’s now easier for companies to get capital. For mid-sized companies, how much they pay to borrow money is very important.

This change means they can grow and compete better with larger companies. The financial landscape is shifting, making it fairer for everyone!

This year, the Indian stock market has been up and down, making many investors feel unsure about where to put their money. Punita Kumar Sinha, a market expert from Pacific Paradigm Advisors, shared her thoughts in an interview with ETNow about what’s going on.

Sinha explained that while the market isn’t overly expensive anymore, it’s also not the perfect time to find cheap stocks. Right now, stocks are trading at average prices from the last 10 to 20 years, which means they’re more reasonable but not super cheap. She mentioned, “While the market is a bit too low, we might see some short bursts of price increases, but they won’t last long until something new impacts the market.”

When looking at India as a whole, Sinha feels optimistic about our economy’s strength, mainly driven by how much people in India spend. However, she pointed out that both local and foreign investors need to return strongly for the market to grow steadily.

Regarding foreign investors selling stocks in India, Sinha explained that it’s not just about things happening outside India. Some money is being moved to China because its stock prices look attractive. She noted, “If the relationship between China and the US gets worse, then money might flow back to India.”

Sinha believes that financial stocks are good investments despite some recent rules affecting certain companies. She said even though these companies are facing some challenges, there’s still a positive growth outlook due to the growing Indian economy.

In her view, it’s essential to be careful with investments now, focusing on areas where India shows strengths, like consumer spending. She also recommended larger companies for safety compared to smaller ones.

In conclusion, Sinha painted a picture of a cautious yet hopeful future for Indian stocks. The prices of stocks are reasonable now, but it’s not yet time for a big return of foreign investors.

Recently, President Donald Trump has stirred things up in the global stock markets with new threats about tariffs, which basically means taxes on imports. India is feeling the heat from this, especially since India charges about 9.5% on American goods while the U.S. only charges 3% on Indian goods. This makes many companies in India, like those making cars, medicine, clothes, and steel, worried about increased costs.

The Indian stock market, represented by the Nifty index, is down about 14% from its highest point, and smaller stocks are struggling too. Foreign investors have pulled out more than $15 billion from Indian stocks just in 2025.

Market Reactions: Uncertainty Looms

Ross Maxwell, a market expert, says that India’s exports to the U.S. could be hit hard by these tariffs, especially for cars and medicines. The Indian Rupee is also losing value against the U.S. dollar as foreign investment declines due to worries about India’s economy slowing down.

Despite these challenges, India is trying to maintain a friendly international trade relationship. India is looking to lower tariffs on U.S. imports like steel and make it easier for American companies, such as Tesla, to do business in India. This could help balance out any retaliatory actions by the U.S.

Pharma Sector: Short-Term Issues, Long-Term Benefits?

India’s pharmaceutical industry, which sells 35% of its goods in the U.S., is at risk but might also benefit. Amisha Vora from PL Group says that while tariffs could rise, India has an edge over China, which faces 20% tariffs. A weaker dollar might also help keep more money flowing into India, despite inflation.

Market expert Sandip Sabharwal notes that big Indian pharma companies like Sun Pharma and Lupin have already faced sell-offs due to these tariff concerns but might still do well if the tariffs aren’t overly drastic.

Trump’s Changing Approach and Global Reactions

Trump’s changing stance on tariffs creates more uncertainty for markets. Dr. V.K. Vijayakumar from Geojit Financial Services mentions that markets think Trump prefers negotiating rather than keeping high tariffs long-term, which could hurt the U.S. economy as well.

Countries like China and Germany are planning to support their economies to balance Trump’s tariff threats, changing the global financial landscape.

Investor Sentiment: Large Companies May Be Safer

Even with global issues, Indian markets have shown some strength. Vinod Nair from Geojit Financial Services says that uncertainty about U.S. tariffs has made investors cautious, especially in emerging markets. However, if corporate earnings improve, it could help lift the mood in India.

Amisha Vora believes there might be a small drop of 4-5% in the market soon, but she sees this as a chance for investment. India’s growing population and ongoing improvements will help improve the market’s performance.

In summary, how India manages its trade strategy will be crucial in navigating these tough times.