Latest news with #ArvindSanger
Economic Times
21-07-2025
- Business
- Economic Times
Tariff Turmoil Ahead? Arvind Sanger flags growing risk for global economies
"So, the markets have so far largely ignored Liberation Day and everything that happened then and now maybe we are coming to at least start to worry about the reality that tariffs may be higher than we expected and in the background you have all this talk about him maybe will he fire Powell and on the interest rate policy," says Arvind Sanger, Geosphere Capital Management. ADVERTISEMENT I want to get your sense on this reiteration of the trade tariff deadline of 1st August that the US has imposed once again. What is your take on that because countries can continue to negotiate after that, but this is when they will have to start paying the tariffs. We still have a lot of uncertainty in terms of major economies and where they stand with the US. So, how do you think the markets could react in the near to medium term? Arvind Sanger: The market is starting to realise that maybe the tariffs are going to sustain at a level higher than what the market was comfortable with. 10% tariffs was fine, but if you are talking about 15%, 20% 25%, 30% and the interesting thing is that none of the major trading partners neither Japan nor the EU nor India all of or Korea every time there is a talk, oh, now we are about to sign a deal with India, today it is oh, we are about to sign a deal with Japan, a few weeks ago it was oh, we are about to sign a deal with EU. I think nobody wants to be first because nobody is confident about whether any deal done with the US under this president is ever final or will he find some reason to recut the deal sometime in the near future. So, this tariff uncertainty has been receded by this acronym taco of Trump always chickening out, but the concern the market is now starting to face is that maybe Trump is trying to prove he is not taco and there could be some tariff related turmoil. So, the markets have so far largely ignored Liberation Day and everything that happened then and now maybe we are coming to at least start to worry about the reality that tariffs may be higher than we expected and in the background you have all this talk about him maybe will he fire Powell and on the interest rate policy. So, there is enough uncertainty out there that I do not think the markets can keep rallying like they have for the last couple of months. Well, indeed that is what the question is about because for major economies the trade deal is not yet through and specifically with respect to India, what we are getting to understand is that the trade deal is on its way back to India from the US for now, it is the fifth round of talks between India and US that have already concluded but no major announcement or result from that is what we are getting to understand. How do you think markets are going to react to this particular news flow because we have already passed that deadline of 9th of July and even 1st of August is approaching now. But if till 1st of August as well, if no trade deal is being announced, what could be the market reaction? Arvind Sanger: It is bad for all global economies. Let us be clear, this is not US wins or US loses, and the rest of the world is not affected. It is US loses and it is all the major economies that are beneficiaries of global trade and all major economies are, India is maybe less affected because India's merchandise trade is not as big a percentage of GDP than other countries but nobody is going to be unimpacted by that. So, I think that it is it is a negative for India along with everybody else. So, it is something we have to start worrying about. We have so far put that on the back burner assuming something favourable would come around, but it is looking things are looking uncertain and that is never good for global economies and certainly not good for India although, again as I said, India is probably one of the less impacted but again it will have an impact. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
08-07-2025
- Business
- Economic Times
Tariffs a temporary storm, structural reforms key for India: Arvind Sanger
So, I think that the earnings will and the commentary from the corporates will be determining more importantly in my opinion as to what Indian markets do in the coming weeks rather than the tariff news. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads "But getting some reasonable framework is clearly going to be a relief for the Indian market because unpredictability is worse than predictability even if the predictability means a little more tariffs and frankly India opening up its economy in some sectors which it may not have been willing to otherwise is long-term very good for the Indian economy 's health in terms of making it more competitive and more open," says Arvind Sanger Well, clearly, the US markets were off a little bit today because of this news about new round of tariffs or reinstatement of the old tariffs in some countries. Luckily, there is time till August one, so the markets did not fall too badly. They fell a little bit 70 bps, 70 basis points in the US S&P from an Indian market standpoint, it is good news. It is now the second or third time in the last few days that President Trump has tweeted that a deal with India is closed. So, hopefully, there is some common ground quickly found and India becomes… There has been a couple of countries that have signed these are all not very detailed but broad outlines. UK has signed one a few weeks ago and then last week, I think, it was Vietnam that signed a deal and now India seems to be lining up and I will be good. It will remove some of the uncertainty, but the reality is with President Trump nothing seems to be permanent and even if India signs a deal now who knows what might come up in the getting some reasonable framework is clearly going to be a relief for the Indian market because unpredictability is worse than predictability even if the predictability means a little more tariffs and frankly India opening up its economy in some sectors which it may not have been willing to otherwise is long-term very good for the Indian economy's health in terms of making it more competitive and more I mean, there is no question in my mind that President Trump does not want the kind of tariff turmoil that we saw after the April 2nd, it was announcement. So, clearly, there is no desire to have that kind of uncertainty and market turmoil and economic what President Trump is doing is trying to put some numbers out there to as they say focus the mind of some of these countries like Korea and Japan to name the two most prominent ones, of the ones named in today's set of new tariffs announced and so if that helps focus the minds of both sides to try to get a deal, there is some my sense is what President Trump and his team are realising is that it is easy to announce these big negotiations, but these negotiations are tough and there is a reason why trade talks take years. And these guys are trying to compress it in weeks. So, I would not count on August one as the last final chance. Maybe it is, but maybe it is far, as we have discovered from the taco kind of name that Trump has been given, I do not think he is interested in causing huge economic turmoil. Short-term a little bit is okay, but he is now looking for assuming that there are deals coming from India and maybe EU and maybe a couple of other countries, then the US markets should settle down and not be too unsettled. But if these promised deals keep getting pushed and pushed to the right and the fear grows that who knows what is coming, then the markets could remain hope and assumption is that India and maybe EU are on track to do deals in the near future in the next few days, hopefully by the end of the week. And if that happens, then to be more specific about the Indian markets should do focus really tariffs is in my opinion a sideshow once we get whatever the tariffs are, some deal on the table, the real issue for the Indian markets is going to be the monsoons are fine, but the economic fundamentals whether it is auto sales growth or other short duration factors that we look at, the data is not extremely encouraging in terms of a strong earnings quarter ahead of I think that the earnings will and the commentary from the corporates will be determining more importantly in my opinion as to what Indian markets do in the coming weeks rather than the tariff news.
Time of India
08-07-2025
- Business
- Time of India
Tariffs a temporary storm, structural reforms key for India: Arvind Sanger
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel "But getting some reasonable framework is clearly going to be a relief for the Indian market because unpredictability is worse than predictability even if the predictability means a little more tariffs and frankly India opening up its economy in some sectors which it may not have been willing to otherwise is long-term very good for the Indian economy 's health in terms of making it more competitive and more open," says Arvind Sanger Well, clearly, the US markets were off a little bit today because of this news about new round of tariffs or reinstatement of the old tariffs in some countries. Luckily, there is time till August one, so the markets did not fall too badly. They fell a little bit 70 bps, 70 basis points in the US S&P from an Indian market standpoint, it is good news. It is now the second or third time in the last few days that President Trump has tweeted that a deal with India is closed. So, hopefully, there is some common ground quickly found and India becomes… There has been a couple of countries that have signed these are all not very detailed but broad outlines. UK has signed one a few weeks ago and then last week, I think, it was Vietnam that signed a deal and now India seems to be lining up and I will be good. It will remove some of the uncertainty, but the reality is with President Trump nothing seems to be permanent and even if India signs a deal now who knows what might come up in the getting some reasonable framework is clearly going to be a relief for the Indian market because unpredictability is worse than predictability even if the predictability means a little more tariffs and frankly India opening up its economy in some sectors which it may not have been willing to otherwise is long-term very good for the Indian economy's health in terms of making it more competitive and more I mean, there is no question in my mind that President Trump does not want the kind of tariff turmoil that we saw after the April 2nd, it was announcement. So, clearly, there is no desire to have that kind of uncertainty and market turmoil and economic what President Trump is doing is trying to put some numbers out there to as they say focus the mind of some of these countries like Korea and Japan to name the two most prominent ones, of the ones named in today's set of new tariffs announced and so if that helps focus the minds of both sides to try to get a deal, there is some my sense is what President Trump and his team are realising is that it is easy to announce these big negotiations, but these negotiations are tough and there is a reason why trade talks take years. And these guys are trying to compress it in weeks. So, I would not count on August one as the last final chance. Maybe it is, but maybe it is far, as we have discovered from the taco kind of name that Trump has been given, I do not think he is interested in causing huge economic turmoil. Short-term a little bit is okay, but he is now looking for assuming that there are deals coming from India and maybe EU and maybe a couple of other countries, then the US markets should settle down and not be too unsettled. But if these promised deals keep getting pushed and pushed to the right and the fear grows that who knows what is coming, then the markets could remain hope and assumption is that India and maybe EU are on track to do deals in the near future in the next few days, hopefully by the end of the week. And if that happens, then to be more specific about the Indian markets should do focus really tariffs is in my opinion a sideshow once we get whatever the tariffs are, some deal on the table, the real issue for the Indian markets is going to be the monsoons are fine, but the economic fundamentals whether it is auto sales growth or other short duration factors that we look at, the data is not extremely encouraging in terms of a strong earnings quarter ahead of I think that the earnings will and the commentary from the corporates will be determining more importantly in my opinion as to what Indian markets do in the coming weeks rather than the tariff news.
Arabian Post
20-06-2025
- Business
- Arabian Post
Citi Warns Hormuz Closure Could Propel Oil Near $90
Arabian Post Staff -Dubai Citigroup analysts warn that a shutdown of the Strait of Hormuz could lift Brent crude prices to approximately $90 a barrel, although they expect any halt to shipping to be brief. They cite the strategic importance of the strait—through which nearly 20 million barrels per day flow—suggesting market reaction would be sharp but short-lived as global efforts would swiftly aim to reopen the passage. Citigroup's forecast is embedded in a wider reassessment of global oil dynamics amid escalating Middle East tensions, particularly stemming from the Israel‑Iran conflict. With around 3 million barrels per day of output at potential risk and Iran among OPEC's top producers, disruptions—even temporary—could reverberate across the energy market. Citi's base-case scenario projects Brent at $75–78 per barrel if approximately 1.1 million barrels daily of Iranian exports are affected. ADVERTISEMENT A total 3 million bpd disruption, sustained over months, could even hit the $90 mark, Citi warns. Still, analysts emphasise that broader supply resilience, including increased output from non‑OPEC producers and reduced demand growth—due in part to slowing Chinese purchases—might temper a sustained rally. Other leading financial institutions draw a similar line: Goldman Sachs and Barclays point to heightened geopolitical risk premiums, respectively estimating $10 and $15–20 per barrel add-ons if Iran's exports are severely cut—a situation that could push prices above $100 in extreme scenarios. JPMorgan outlines a worst-case blockade of the Hormuz strait leading to a $120‑130 spike, though such events would likely be fleeting. Analysts and experts stress that while short-term oil supply disruptions would sharply affect spot prices, structural market factors could offset prolonged volatility. OPEC has spare capacity; U.S. shale output remains nimble; and China has begun trimming its purchases as inventories fill, helping absorb supply shocks. Geosphere Capital's Arvind Sanger assesses a 25 percent likelihood of an actual tactical attack on critical infrastructure such as Kharg Island or Hormuz, but holds that there is a 75 percent chance hostilities do not directly impact supply chains. Shipping insurance and risk premiums are rising, though long‑term disruption remains unlikely. Diplomatic signals, particularly from Washington playing a stabilising role in response to Iranian threats, may also help contain risks. Historical precedent—such as Rapid US naval deployments near the strait in 2008—reinforces the view that any attempt to close Hormuz by Tehran would quickly provoke international counter‑measures. Market movements reflect this delicate balance. Brent futures recently climbed above $78 before easing to the low‑to mid‑$70s, as traders weighed the potential for escalation against buffer capacity and broader production trends. Estimates from Rystad Energy suggest oil will likely remain capped below $80 unless dramatic escalation occurs—a view echoed by Midland Reporter‑Telegram coverage. Citi's note, authored by Anthony Yuen and Eric Lee, highlights that even though Hormuz closure would trigger a pronounced price spike, global strategic response and logistical imperatives would likely curtail its duration. They describe that, in their bullish scenario, 'any closure of the Strait could lead to a sharp price spike … but … it should not be a multi‑month closure.' Investors are advised to monitor diplomatic channels, oil inventories, and production shifts in Saudi Arabia, UAE and the US. While a temporary supply squeeze may lift prices—potentially to the $90 level—structural growth in non‑OPEC output and strategic reserves may prevent a prolonged energy shock.
Economic Times
05-05-2025
- Business
- Economic Times
Can't call the bottom in this market; it's a buy-on-dip rather than sell-on-rise market: Abhay Agarwal
Live Events You Might Also Like: Buy on dips instead of selling on rallies now; PSUs remain bull market leaders: Dharmesh Shah You Might Also Like: Will the party continue in the Indian market? Arvind Sanger answers You Might Also Like: US dollar declining, global markets decoupling from the US market: Rupen Rajguru (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel , Founder & MD,, says his advice to investors and own strategy is to drip money in because it is very difficult to call the bottom in this market. Rather than going all in, we should figure out what you want to invest in and keep investing in it over the next two to three months in a systematic manner. So, to answer your question, yes, we are definitely looking at this as a buy-on-dip market rather than a sell-on-rise market has been changing its texture. If you go back over the last six months. Around November, December was the time that it stopped being a buy-on-dips market and started converting itself into a sell-on-rise market and it stayed there till March when the FPI selling was peaking out. But what we are seeing now is that there is more confidence that the domestic consumption in India that had fallen off the cliff in the December quarter is now coming back, driven by lower interest rates, more liquidity in the system and better consumer a result, after earnings downgrading over the last two quarters, this quarter the commentary is better and more positive. This is giving the investors the confidence that the earnings growth has probably bottomed out and will revert to a mean of 10% to 15% for the next three to five years. That is the belief with which long-term investors are willing to make their bet in the the same time, there is this overarching fear of geopolitical tensions and something happening at any point of time which is the reason that domestic investors are not fully in. So, I see a dichotomy here from the last quarter that the foreign investors are now continuously looking for opportunities in India whereas the domestic investors are more cautious. My personal view is that the valuations are reasonable. There are growth opportunities . There are good growth sectors that are turning around from cyclical bottoms that will reward investors who are patient and not worried about daily volatility or weekly the same time, our advice to investors is and our own strategy is to drip the money in the markets because it is very difficult to call the bottom in this market. So rather than going all in, figure out what you want to invest in and then keep investing in it over the next two to three months in a systematic manner. So, to answer your question, yes, we are definitely looking at this as a buy-on-dip market rather than a sell-on-rise sector that we have been tracking and which we believe has already made or is in the midst of making a cyclical bottom is the entire small finance bank and lenders who do unsecured lending and also the larger banks. Frankly, that whole segment of banking and financials, NBFCs that lend to the middle to bottom of the pyramid, have a very solid branch network, branch presence, and the ability to generate deposits. This whole sector got beaten down over the last quarter largely because of very aggressive guardrails put in by RBI which led to lesser liquidity in the system, lesser money flow to them and everybody just focused on collections rather than increasing the book in the current construct, it looks like RBI has now come to a conclusion. The recent steps that they have taken show that they want to put back more liquidity in the system. They do not want to starve the entire bottom of the pyramid borrowers from credit. It is very essential that that sector that is largely self-employed continues to have access to credit. So, through credit guarantee schemes under which money is flowing to even microfinance lenders, there is optimism that that sector has kind of bottomed are of the view that this is a good time for investors to look at these smaller banks and NBFCs that are trading at either one-time book value and some even below that, but you will need to be able to take a two- to three-year perspective to make pretty good returns because this sector is a cyclical sector. We have seen the last three cycles, it bottoms out and then again aggressive lending takes place and when the valuations rise. So, this is one sector that we are quite bullish second sector is the entire pharma space for us. Again, it has not bottomed out, it has been the best performing sector, so not really a sector that we are saying has bottomed down cyclically but we believe that this is a sector that lot of hard work has been done in terms of creating a very solid product pipeline for exports to US market there is a very positive demand environment in the US for Indian companies, and a very friendly US FDA after a long period of time. All systems go for Indian pharma companies that are exporting to the US. So, these are two sectors we are pretty positive whole objective of the tariff realignment by the US government, the US president was not to create chaos in the global trade but to signal to the rest of the world that they cannot use the US as a dumping ground for their products and build on the other side tariff structures for inbound imports into their own country from the long as that problem is largely solved, the US tariffs are not going to hurt anybody in the medium to long term. There is a lot there and there are aggressive posturing and then there are back steps taken to make sure that nothing goes out of whack for the US customers. India especially has been a smaller trade partner for the US. I mean what we export to the US does not really hurt us. It is textiles. It is some bit of chemicals and gems and jewellery and services is one of the big we import from the US are automobile parts components, electronics, semiconductors, and higher technology items, electronics being top of that. It is a trade structure where it is easy for both the countries to come to terms and my personal view is that India will benefit from this kind of tariff structure, especially for textile exports and chemical exports. There were other countries that had more favourable tariff structures to the US and Europe and if India realigns, it is a golden opportunity for Indian exporters and the Indian government to benefit from the new tariff structure and generate higher trade activity with the US.
