Stock Market: Sit Tight with Agility to Weather Trump Tariff Storm

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Investors should not worry about Trump but focus on studying stocks and their stories. If the story is compelling, weather the storm.

By S JHA

MUMBAI, August 9, 2025 — Indian stock market counted losses for six consecutive weeks after indices nosedived on Friday. Street is unsteady with uncertainties. Investors are worried. This may be the time to say again that one must wear tight seat belt and weather the storm.

Amit Seth is a Kolkata-based stock Guru. He educates and mentors new entrants. “In 2007, out of shear inexperience, I bought IVRCL infra at ₹160 per share as people mentioned that it may be the next Larsen and Toubro. IVRCL Infra is RIP today and Larsen is touching the skies,” wrote Seth in his Telegram channel. The stock market makes new entrants believe that the street is a pathway to millionaire club in quick time. “The stock price of IVRCL is almost zero today and I lost a lot of money. The Bluechip Larsen was trading at ₹400 in 2008, while it is ₹3600 per share now,” added Seth.

US President Donald Trump’s tariffs on India shook up the investors’ confidence. “The week saw broad-based selling across all sectors, particularly in IT, Auto, and FMCG, despite attempts by domestic institutions to cushion the fall,” noted StockEdge, an equity market research firm, in a post in its Telegram channel.

The undertone in the street is of the foreign institutional investors (FIIs) dumping India. Trump tariffs have only intensified their efforts to sell Indian equities. The US bourses on the other hand are strengthening in sign that reverse migration of hot money is underway. Trump in a post in his Truth Social yesterday boasted of rising US stock markets as an endorsement of his tariff policy.

Yet it’s not all gloom on the street. Every fall is an opportunity to recalibrate and readjust. On a day when the stock market crashed big, likes of KRBL, Caplin Point Laboratory, Sanghvi Movers, and Rate Gain Travels were among several of the stocks which soared. Equity veterans state that all such stocks have stories to give wind in their sails.

Booming domestic tourism, India’s likely gains in Basmati rice exports due to India-UK Free Trade Agreement, growing logistics demands, and an Indian advantage in API pharmaceutical business due to various reasons are pulling such stocks upwards.

While Seth is absolutely correct that one must avoid herd mindset in equity investing, eagle eyes also keep sight on emerging companies which may become big in the next one decade.

Also, theme rotation in the stock market is a reality. It may be a kind of a relay run for investors, who should be agile enough to spot stocks losing steam and hop onto others which may be bracing up for a sprint. Stock markets have seen many upheavals such as Lehman Brothers, Covid-19, and even scams of 1990s. Bourses have never gone to past low levels. This explains why investors should not fret over Trump and rather spend time in studying stocks an discover their tales. If story is exciting, ride the storm.

(This is an opinion piece, and views expressed are those of the author. Mention of stocks is for illustration, and not for recommendation)

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