Trump Tariff Block: Analyst Bullish on TCS, L&T, Bajaj Auto
The recent reversal of Trump’s tariff orders by a US court has sent shockwaves through the global trade dynamics. For Indian exporters, this development is a potential game changer, and investment advisor Adarsh Nimborkar is no exception. In a recent interview, Nimborkar shared his optimism about the near-term performance of certain Indian stocks, including TCS, Bajaj Auto, L&T, and Sun Pharma.
The Trump administration’s tariff policies, aimed at protecting American industries, had been a major concern for Indian businesses. The tariffs on steel and aluminum imports from India, imposed in 2018, had already had a significant impact on the country’s exports. However, the US court’s intervention has now blocked the implementation of these tariffs, providing a much-needed respite to Indian exporters.
TCS, one of India’s largest IT companies, is expected to benefit from the reversal of tariffs. As the company’s business model is heavily dependent on exports, any reduction in tariffs would lead to increased profitability. Nimborkar believes that TCS’s stock price is likely to appreciate in the near term, driven by the expected improvement in export numbers.
Another company that stands to gain is Bajaj Auto, a leading two-wheeler manufacturer. The company’s exports have been impacted by the tariffs imposed by the US, and the reversal of these tariffs would lead to increased demand for its products. Nimborkar expects Bajaj Auto’s stock price to rise as the company’s exports are likely to improve significantly.
L&T, a major infrastructure and construction company, is also expected to benefit from the reversal of tariffs. The company’s business is diversified across various sectors, including construction, infrastructure, and engineering. While the tariffs on steel and aluminum imports may not have had a direct impact on L&T’s business, the reversal of these tariffs would lead to a reduction in costs and an improvement in profitability.
Sun Pharma, a leading pharmaceutical company, is also expected to benefit from the reversal of tariffs. The company’s exports of pharmaceutical products to the US are likely to increase as the tariffs are lifted. Nimborkar believes that Sun Pharma’s stock price is likely to appreciate in the near term, driven by the expected increase in exports.
So, what does this mean for investors? According to Nimborkar, the reversal of Trump’s tariff orders marks a significant shift in global trade dynamics. The US court’s intervention has sent a strong message to governments around the world that protectionism is not the answer, and that free trade is the way forward.
For investors, this means that it’s time to revisit their portfolios and consider investing in companies that are likely to benefit from the reversal of tariffs. TCS, Bajaj Auto, L&T, and Sun Pharma are all good options to consider, as they are likely to benefit from the expected improvement in trade dynamics.
In conclusion, the reversal of Trump’s tariff orders is a significant development that has the potential to benefit Indian exporters. Analysts like Adarsh Nimborkar are bullish on stocks like TCS, Bajaj Auto, L&T, and Sun Pharma, and investors would do well to take note. With the global trade landscape set to change, now is the time to revisit your portfolios and position yourself for the upside.
