Markets continue to ignore impending risks: Pramod Gubbi of Marcellus

The incremental buyer in the market is primarily the retail investor - either directly or via mutual funds (MFs) - which makes the market even less reflective of these events in reality

Markets have been anything but discerning, ignoring even the actual earnings slowdown, which is now well into its sixth quarter, says Pramod Gubbi, cofounder at Marcellus Investment Managers, in an email interview with Puneet Wadhwa. Edited excerpts: 

How are the markets interpreting recent policy developments, especially on the tariff front? 

S&P Global Ratings’ upgrade reflects long-term stability, but investors had already priced it in, given the narrow India-US yield gap. Tariffs are negative, though India is less export-reliant than other emerging markets. Hopes of India emerging as a manufacturing hub are therefore tempered. Goods and services tax cuts are positive,