Trump Tariff Block: Analyst Bullish on TCS, L&T, Bajaj Auto
In a significant development that could have far-reaching implications for Indian exporters, a US court has blocked the Trump administration’s tariff orders on certain Indian goods. This reversal has sent ripples through the global trade dynamics, and investment advisor Adarsh Nimborkar believes that this could be a game-changer for Indian companies.
In an interview with StockTwits, Nimborkar, who is the founder of Nimborkar Securities, highlighted the potential upside in certain Indian stocks in the near term. According to him, companies like Tata Consultancy Services (TCS), Larsen & Toubro (L&T), Bajaj Auto, and Sun Pharma could benefit from this development.
What’s at Stake?
For those who may not be aware, the Trump administration had imposed tariffs on certain Indian goods, including steel and aluminum, citing national security concerns. However, the US court’s reversal of these orders has cleared the way for Indian exporters to access the US market without the burden of these tariffs.
This is significant because the US is one of the largest markets for Indian goods, and any restrictions on exports can have a disproportionate impact on Indian companies. The reversal of these orders is therefore a welcome development for Indian exporters, and Nimborkar believes that this could lead to a surge in demand for certain Indian goods.
TCS: A Potential Winner
Nimborkar’s first pick is Tata Consultancy Services (TCS), India’s largest IT services company. According to him, TCS has a significant presence in the US market, and the reversal of the tariffs could lead to an increase in demand for its services. TCS has a strong track record of delivering value to its shareholders, and Nimborkar believes that the company’s stock could gain around 10-15% in the near term.
L&T: A Strong Play on Infrastructure
Larsen & Toubro (L&T) is another stock that Nimborkar is bullish on. L&T is a leading player in the Indian infrastructure sector, and the reversal of the tariffs could lead to increased demand for its services. Nimborkar believes that L&T’s stock could gain around 12-18% in the near term, driven by increased demand for its services.
Bajaj Auto: A Cyclical Play
Bajaj Auto is another stock that Nimborkar is bullish on. According to him, Bajaj Auto is a cyclical play that is likely to benefit from the reversal of the tariffs. The company has a strong presence in the US market, and the increase in demand for its products could lead to a surge in its stock price. Nimborkar believes that Bajaj Auto’s stock could gain around 15-20% in the near term.
Sun Pharma: A Pharmaceutical Play
Finally, Nimborkar’s fourth pick is Sun Pharma, a leading pharmaceutical company in India. According to him, Sun Pharma has a strong presence in the US market, and the reversal of the tariffs could lead to increased demand for its products. Nimborkar believes that Sun Pharma’s stock could gain around 10-15% in the near term, driven by increased demand for its products.
Conclusion
In conclusion, the US court’s reversal of Trump’s tariff orders is a significant development that could have far-reaching implications for Indian exporters. Investment advisor Adarsh Nimborkar believes that certain Indian stocks, including TCS, L&T, Bajaj Auto, and Sun Pharma, could benefit from this development in the near term. While this is not a guarantee of success, Nimborkar’s picks are based on his analysis of the companies’ fundamentals and their potential for growth.
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