Markets may cheer a US-India reset, but these sectors might not, warns hedge fund manager
On the policy front, he noted India’s willingness to lower tariffs on U.S. industrial goods, alcohol, and automobiles. While this opens doors for American exporters, it poses significant challenges for Indian counterparts.
- Sep 11, 2025,
- Updated Sep 11, 2025 8:40 AM IST
A potential end to the India-U.S. trade war could spark a market shake-up—benefiting some sectors while battering others. Hedge fund manager and popular finfluencer Akshat Shrivastava says investors need to move beyond the headlines and focus on where real value—and risk—lies.
In a video, Shrivastava pointed to IT and semiconductors as clear winners if trade tensions ease. With Indian IT stocks already showing signs of recovery, he expects the sector to surge further, calling it “undervalued” and “ripe for a rally.”
Shrivastava believes any reduction in friction with the U.S. will directly benefit Indian tech exporters, especially large-cap players, as American clients re-engage.
Semiconductors and digital infrastructure are also in focus. He highlighted how the U.S. is likely to export tech stacks, including chips, to India—similar to how it supports data infrastructure development in countries like the UAE. Indian companies operating in the data center and semiconductor space stand to gain from access to this tech pipeline.
However, Shrivastava issued strong cautions on several sectors. Chief among them: automobiles. With U.S. companies like Tesla getting red-carpet treatment in India, domestic automakers may face serious disruption.
He believes tariff cuts and relaxed import norms could expose Indian firms to heightened competition—potentially eroding market share.
Defense is another area of concern. Although it has seen a surge in investor interest and mutual fund inflows recently, Shrivastava says increased U.S. defense exports to India could challenge local players.
“Be careful if you’re overexposed to Indian defense stocks,” he warned.
Pharma too may be in the line of fire. U.S. companies are pushing for tighter IP regulations in India—a move that could limit the generic manufacturing edge Indian firms enjoy. Shrivastava says the sector is too volatile right now and advised a “wait and watch” approach.
On the policy front, he noted India’s willingness to lower tariffs on U.S. industrial goods, alcohol, and automobiles. While this opens doors for American exporters, it poses significant challenges for Indian counterparts.
If trade tensions de-escalate, expect sharp movements—both up and down. Shrivastava's core view: Tech is the play, while auto, defense, and pharma could get blindsided. For investors, now’s the time to rebalance with geopolitical clarity in mind.
A potential end to the India-U.S. trade war could spark a market shake-up—benefiting some sectors while battering others. Hedge fund manager and popular finfluencer Akshat Shrivastava says investors need to move beyond the headlines and focus on where real value—and risk—lies.
In a video, Shrivastava pointed to IT and semiconductors as clear winners if trade tensions ease. With Indian IT stocks already showing signs of recovery, he expects the sector to surge further, calling it “undervalued” and “ripe for a rally.”
Shrivastava believes any reduction in friction with the U.S. will directly benefit Indian tech exporters, especially large-cap players, as American clients re-engage.
Semiconductors and digital infrastructure are also in focus. He highlighted how the U.S. is likely to export tech stacks, including chips, to India—similar to how it supports data infrastructure development in countries like the UAE. Indian companies operating in the data center and semiconductor space stand to gain from access to this tech pipeline.
However, Shrivastava issued strong cautions on several sectors. Chief among them: automobiles. With U.S. companies like Tesla getting red-carpet treatment in India, domestic automakers may face serious disruption.
He believes tariff cuts and relaxed import norms could expose Indian firms to heightened competition—potentially eroding market share.
Defense is another area of concern. Although it has seen a surge in investor interest and mutual fund inflows recently, Shrivastava says increased U.S. defense exports to India could challenge local players.
“Be careful if you’re overexposed to Indian defense stocks,” he warned.
Pharma too may be in the line of fire. U.S. companies are pushing for tighter IP regulations in India—a move that could limit the generic manufacturing edge Indian firms enjoy. Shrivastava says the sector is too volatile right now and advised a “wait and watch” approach.
On the policy front, he noted India’s willingness to lower tariffs on U.S. industrial goods, alcohol, and automobiles. While this opens doors for American exporters, it poses significant challenges for Indian counterparts.
If trade tensions de-escalate, expect sharp movements—both up and down. Shrivastava's core view: Tech is the play, while auto, defense, and pharma could get blindsided. For investors, now’s the time to rebalance with geopolitical clarity in mind.