Navigation of market volatility: What should your investment strategy be in the midst of US rates? Experts advise | Einsmark news
Indian benchmark indices, Sensex and Nifty, performed a strong recovery on Thursday, with early losses caused by US tariff problems. The Sensex dropped nearly 700 points from its Intraday Low Point, while the Nifty scored 160.7 points to touch 23.306.50. The recovery was led by a rally in pharmaceutical shares and cooling of crude oil prices, which helped to compensate the initial sale arising from US President Donald Trump’s new tariff measures. On April 2, 2025, President Trump unveiled a new tariff strategy, called ‘Liberation Day’, which aims to correct the imbalances in the trade. The plan places a 10 percent universal rate on all imports, with effect from April 5, with country -specific reciprocal rates starting from April 9. India was one of the most affected, with a sharp rate of 26 percent on its exports to the US, while this move in the morning session found the investor sentiment in the morning session, the broader market has recovered. Expert insights on the market and investment strategy experts shared their opinion on how to navigate the ongoing unrest in the stock market. Diversification remains the most important Chethan Shenoy, director and head of product and research at Anand Rathi Wealth, has noted that although India is influenced by rates, the country is not very dependent on export, which offers some isolation. He advised investors to maintain a diversified portfolio to navigate the volatility, and recommends an asset allocation of 55:20:25 respectively in large cap, middle bite and small distance. “A well -diversified investment strategy on asset classes and market capitalizations will help investors resist the market fluctuations and achieve their return goals,” Shenoy said. Use Dips as good access points Nitin Rao, CEO of Incred Wealth, has noted that world markets are entering a new economic order, where the US simply adjusts its policy to fit the existing tariff structures in other countries. He expects continued volatility in the short term, but believes that the sharp declines of market can provide attractive buying opportunities for high-risk investors. “Markets will have to praise these changes, both in terms of sentiment and earnings. At some point, Sharp Falls can provide good access points in this new economic order,” Rao added. Sonam Srivastava, founder and fund manager at Wright Research PMS, led long -term opportunities, warned that volatility in the short term is likely, as higher input costs over multiple geographical areas can push our inflation higher and delay the expected federal reserve. “Shares can remain under pressure, especially sectors that are sensitive to global trade and demand,” Srivastava said. However, she believes that the movement after de-globalization and bilateral trade treaty can position India as a neutral, stable and strategic partner in world trade. She advised investors to stay careful, focus on high quality stocks, and to carefully monitor macroeconomic developments, especially any retaliation of trade measures and the Fed’s policy direction. In summary, although US rates have created initial panic in the markets, the strong setback in Sensex and Nifty indicates that investors are starting to consume the impact. The exclusion of the Indian pharmaceutical export of the tariff increase provided a much -needed cushion, while crude oil prices supported the sentiment. Experts believe that diversification and a focus on high quality stocks remain the best strategies in the current environment. Although the short -term volatility is expected, investors with a long -term horizon may find selective opportunities as the global trading landscape develops. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. Business NewsMarketsstock Markets Navigating Market -volatility: What should your investment strategy be in the midst of US rates? Experts advise less less