Speaking on how his Alternative Investment Fund (AIF) is navigating market volatility, Bahety highlights that India’s structural growth story remains firmly intact.
Tariffs: A Net Positive for India
Bahety believes the recent tariff tensions between the US and other economies, including India, may not be as disruptive as feared. “India’s exports to the US account for just about 2% of its GDP. Moreover, the tariff rates imposed on Indian goods are significantly lower than those on competitor nations. As such, we see the current tariff situation as net positive for India,” he said.
With India’s macroeconomic fundamentals strong and liquidity conditions supportive, Bahety emphasized that Carnelian is continuing to focus on structural growth stories. “We are overweight on BFSI, pharma, CDMO, and industrials — sectors where the impact of tariffs is minimal. While IT could face some headwinds if US growth slows, we don’t see this as a long-term concern,” he added.
Volatility as an Investment OpportunityRather than retreating in the face of volatility, Carnelian Asset Management — which oversees an AUM of Rs 10,000 crore — views the current scenario as an opportunity to deploy capital more efficiently.“We are treating this volatility as a chance to invest in long-term structural opportunities. Many of these companies are relatively unaffected by the tariffs, and post the recent corrections, their valuations have become more attractive,” Bahety noted.
Minimal Portfolio Rejig
On whether any adjustments were made in April to safeguard capital, Bahety clarified that no major rejig was necessary. “We conducted a detailed analysis of our portfolios to gauge the exposure to US manufacturing. The weightage of such companies is limited — between 8-12% — and we don’t see any material shift in their growth trajectory. So, we’ve not made significant changes to our portfolio.”
Advice to Investors in FY26
Looking ahead to FY26, Bahety offered a word of advice for investors: “Stay calm and avoid getting swayed by short-term noise. Historically, uncertain times have proven to be the best periods for investing. When viewed objectively, the current tariff tussle between the US and China could turn into a major tailwind for Indian manufacturing exports if it persists.”
Bahety concluded by reiterating his bullish stance on India’s long-term prospects, encouraging investors to focus on fundamentals and look through the short-term volatility.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
