Every dip now a good buying opportunity: Mahesh Patil

Mahesh Patil, CIO, ABSL AMC, says from an India standpoint, the impact of the reciprocal tariffs is there for a few sectors including large exporters like IT and pharma, because of the slowdown in the US. But the overall impact compared with the US trade, the impact on GDP, will not be more than 20 basis points. The reaction has also not been very big and it should probably settle down.
Patil says he does not see a major downgrade to our earnings for next year, except for one or two sectors. Any dip because of this correction could be a good buying opportunity.

It is easy to turn bearish in this market, but should one really turn bearish? If yes, why? If no, why not?
Mahesh Patil: Clearly, the Trump tariffs that have come out are slightly worse than expectations. But if you look at it from an India standpoint, I would not be too bearish. While the tariffs have been imposed across the various countries, relatively if you look at India, tariffs are much lower than some of these other partners on the global front – be it China, Vietnam, or Bangladesh. In that sense, we will not be competitively worse off over there.

Secondly, I would guess that there could be bilateral talks in the next few weeks and India has done well in terms of trying to work with the US. So, we could see some kind of a give and take over here, and the impact could be probably mitigated over there. Also, from India’s perspective, the weakness or a downturn in the markets and the economy started much earlier. So, our pain started from the first