As global trade risks mount, money managers bet on domestic plays
India’s PMS managers brace for Trump tariffs—here’s where they’re investing
With the April 2 deadline for U.S. tariff decisions looming, India’s fund managers are reassessing their portfolios amid heightened volatility. While a sharp rebound followed the steepest correction in small- and mid-caps since the pandemic, the rally is losing steam, and nervousness is creeping back into markets. How are PMS managers navigating this period of uncertainty? Conversations with five key players reveal a common theme: prioritising domestic businesses and exporters with competitive advantages that can withstand tariff pressures.
Marcellus Investment: Focusing on quality in a slowdown
Pramod Gubbi, founder of Marcellus Investment, is staying true to a stock-specific approach. “As bottom-up investors, we focus on individual stocks rather than speculating on broader market movements. Our analysis is grounded in stock-specific impacts, especially in the context of India’s cyclical slowdown,” says Gubbi.
With FY25 earnings growth projected to remain in the mid-to-high single digits, he notes that valuations, while slightly corrected, remain elevated. Financials remain a core focus. “They’re still reasonable compared to other sectors,” he explains, pointing to names like HDFC Bank, ICICI Bank, and Bajaj Finance.
Gubbi is cautious about the slowdown in government-led capital expenditure, warning that a sharp deceleration in the public Capex cycle after years of strong growth could weigh on sectors reliant on state spending. He also sees signs of a cooling in urban middle-class consumption.
