Tariffs, GST cuts and growth bets: Prateek Agarwal on what’s driving Indian markets

Indian equity markets remain caught between global uncertainty and domestic opportunities, with investors closely watching tariff developments. In a conversation with ET Now, Prateek Agarwal, MD & CEO, MOAMC shared his outlook on tariffs, GST rationalization, sectoral preferences, and the role of domestic and foreign flows.

Tariff Overhang Still a Factor

Speaking on the trade front, Agarwal noted that tariff issues continue to weigh on investor sentiment. “Yes, that is the last overhang. We have seen how markets have responded globally pre-deal and after the deal and we sense a deal with India is around the corner soon and which should then keep markets happy,” he said.

GST Cuts Could Boost Aspirational Spending

On the impact of GST rate rationalization expected from September 22, Agarwal highlighted its potential for consumer demand. “Look at it this way, consumption is a very broad array of things. It comprises staples. It comprises durables and can extend all the way up to a house and telecom. What the GST cut would do to our mind is to help people save some money on very highly penetrated categories and enable consumers to dip into some of the more aspirational categories,” he explained. According to him, discretionary and durable goods stand to gain more than staples.

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Growth, Not Just Value, is the Focus

From a broader market perspective, Agarwal emphasized a shift towards growth investing. “There are two ways of making money, buying value, buying growth. We are growth investors and we do believe that after five plus years of recovery from covid lows which resulted in a lot of value getting there in the marketplace, it is now time for growth,” he said.


He pointed to sectors such as electronic manufacturing, renewables, electric vehicles, luxury goods, defence, and manufacturing as areas with multi-year growth potential. “While people celebrate consumption because of the GST cut, well stuff will have to be made in factories… the spaces which are tail winded have several years of high growth in front are the spaces that we are very focused on,” he added.

Portfolio Strategy Remains Consistent

When asked about any shift in preferred sectors, Agarwal confirmed his stance remains intact. “The views remain the same, our portfolios continue to reflect all of these spaces and hospitals and GLP beneficiaries to name a few… most of our portfolios will have most of these spaces,” he said. According to him, growth sectors will outperform at different times, and having broad representation ensures participation across cycles.

Flows, Sentiment, and Market Outlook

Addressing the pressure from foreign institutional investors (FIIs), Agarwal pointed to three factors shaping flows. “FPI selling we should expect it to continue while maybe the intensity will reduce because the rates are going down there… Domestic flows we sense are getting stronger… And then the third piece of the puzzle is a lot of paper that is coming into the market in terms of IPOs, promoter selling, PE selling,” he explained.


Despite supply pressures, Agarwal remains cautiously optimistic. “Given that the supply of paper is also very strong, ceteris paribus one would have expected markets to be flat. But our big thought is that more than the flows it is sentiment that drives the market. Sentiment I sense is turning positive,” he concluded.


With tariffs nearing resolution, GST cuts around the corner, and growth sectors offering strong tailwinds, Agarwal’s views underline a cautious but positive outlook for Indian equities in the months ahead.
Indian equity markets remain caught between global uncertainty and domestic opportunities, with investors closely watching tariff developments. In a conversation with ET Now, Prateek Agarwal, shared his outlook on tariffs, GST rationalization, sectoral preferences, and the role of domestic and foreign flows.

Also Read: India stock market branded world's worst in 2025. Can Sensex, Nifty stage stunning comeback?

Tariff Overhang Still a Factor

Speaking on the trade front, Agarwal noted that tariff issues continue to weigh on investor sentiment. “Yes, that is the last overhang. We have seen how markets have responded globally pre-deal and after the deal and we sense a deal with India is around the corner soon and which should then keep markets happy,” he said.

GST Cuts Could Boost Aspirational Spending

On the impact of GST rate rationalization expected from September 22, Agarwal highlighted its potential for consumer demand. “Look at it this way, consumption is a very broad array of things. It comprises staples. It comprises durables and can extend all the way up to a house and telecom. What the GST cut would do to our mind is to help people save some money on very highly penetrated categories and enable consumers to dip into some of the more aspirational categories,” he explained. According to him, discretionary and durable goods stand to gain more than staples.

Growth, Not Just Value, is the Focus

From a broader market perspective, Agarwal emphasized a shift towards growth investing. “There are two ways of making money, buying value, buying growth. We are growth investors and we do believe that after five plus years of recovery from covid lows which resulted in a lot of value getting there in the marketplace, it is now time for growth,” he said.


He pointed to sectors such as electronic manufacturing, renewables, electric vehicles, luxury goods, defence, and manufacturing as areas with multi-year growth potential. “While people celebrate consumption because of the GST cut, well stuff will have to be made in factories… the spaces which are tail winded have several years of high growth in front are the spaces that we are very focused on,” he added.

Portfolio Strategy Remains Consistent

When asked about any shift in preferred sectors, Agarwal confirmed his stance remains intact. “The views remain the same, our portfolios continue to reflect all of these spaces and hospitals and GLP beneficiaries to name a few… most of our portfolios will have most of these spaces,” he said. According to him, growth sectors will outperform at different times, and having broad representation ensures participation across cycles.

Flows, Sentiment, and Market Outlook

Addressing the pressure from foreign institutional investors (FIIs), Agarwal pointed to three factors shaping flows. “FPI selling we should expect it to continue while maybe the intensity will reduce because the rates are going down there… Domestic flows we sense are getting stronger… And then the third piece of the puzzle is a lot of paper that is coming into the market in terms of IPOs, promoter selling, PE selling,” he explained.


Despite supply pressures, Agarwal remains cautiously optimistic. “Given that the supply of paper is also very strong, ceteris paribus one would have expected markets to be flat. But our big thought is that more than the flows it is sentiment that drives the market. Sentiment I sense is turning positive,” he concluded.


With tariffs nearing resolution, GST cuts around the corner, and growth sectors offering strong tailwinds, Agarwal’s views underline a cautious but positive outlook for Indian equities in the months ahead.