With the US slapping a fresh 25% tariff on Indian exports, ranging from auto components and textiles to electronics and gems, the threat to bilateral trade has returned to the spotlight.

Analysts say the direct hit could affect over $3 billion worth of annual shipments, though the broader impact on India’s GDP is expected to be limited.

The stock market is currently in the midst of the Q1 FY2026 earnings season, and two key sectors which often shape market sentiment – Information Technology and Retail — find themselves at a crossroads.

According to market analysts, the retail sector maintains its momentum through consumption growth even though profit margins face challenges. There are, however, no such visible tailwinds for the IT sector during these times. Hence, such divergent earnings pressures could present selective opportunities rather than sector-wide calls.

Geopolitical uncertainties and a volatile global landscape often unsettle investors, but history shows “these are among the best times to invest,” says Arun Patel, Founder and Partner at Arunasset Investment Services in an exclusive interaction with Bizz Buzz.

Ankit Patel from Arunasset Investment Services predicts the Indian stock market may exceed previous highs in H2CY25, driven by strong macro fundamentals and consumption growth. He advises disciplined investing amidst geopolitical uncertainty.

As market volatility tapers and India’s economic fundamentals remain robust, long-term investors should stay the course rather than wait on the sidelines, says Arun Patel, Founder & Partner at Arunasset Investment Services, in this edition of ETMarkets Smart Talk.