Stocks to Buy: These domestic-linked stocks can beat Trump tariff woes

Stocks to Buy: Analysts at Motilal Oswal Financial Services believe ICICI Bank, L&T, RIL, Indian Hotels, and Dixon Tech could be among stocks that may be insulated from Donald Trump-induced trade war

Stock Market Crash, Stocks to Buy: Indian stock markets melted on Monday amid a global sell-off, that has gripped equities ever since US President Donald Trump announced reciprocal tariffs on various countries last week. That said, even as investors fear that an ensuing trade war between the US and other countries could upend global trade chain, analysts at brokerage firm Motilal Oswal Financial Services (MOFSL) expect the macro and earnings impact of such moves to be moderate for India. 

 

In a recent report, MOFSL said India's export base is diversified across services, pharma, chemicals, and electronics - segments that are less vulnerable to blanket tariff hikes. "While sectors like textiles, metals, or certain agri-products could feel near-term pain, the broad-based nature of India's trade relationships and its growing focus on non-cyclical exports act as shock absorbers," the brokerage said.

 

 

India's economy derives over 60 per cent of its gross domestic product (GDP) from domestic consumption, giving it a strong internal demand engine. Additionally, schemes like PLI and 'Make in India' are enabling import substitution and strengthening self-reliance. The continued rise in domestic manufacturing and capex helps reduce sensitivity to external trade shocks, analysts said.  Also Read: From Harshad Mehta to Covid-19 to 2025: India's worst stock market crashes ever

 

According to the report, the signs of a consumption recovery are taking shape on the ground. Urban demand remains healthy across categories like travel, entertainment, and organised retail. Early indicators, it added, also point to a rural uptick, aided by softening food inflation, rising rural wages, and government support measures. 

 

“Personal loan growth and digital transactions are hitting new highs, reinforcing the narrative of aspirational spending. Together, this macro-consumption combo enhances visibility for earnings resilience in FY26,” the brokerage said.

 

Amid this, analysts at MOFSL recommend investors to invest with quality, growth and resilience. The brokerage remains overweight on the following largecap and quality midcap stocks across sectors that can benefit from capex, credit growth, and consumption revival from a long-term perspective:

  Top stocks to buy in this market: MOFSL stock picks

 

Top largecap picks:

ICICI Bank – Strong growth visibility, best-in-class asset quality

L&T – Capex proxy with structural tailwinds

Reliance Industries – Multi-business growth engine with digital and consumer bets

Sun Pharma – Defensive play with margin visibility and global pipeline

Bharti Airtel – Steady re-rating story in telecom

 

Top Midcap Picks:

Indian Hotels – Beneficiary of travel rebound and operating leverage

Dixon Technologies – Leading EMS player with PLI support

BSE Ltd. – Unique platform with high profitability metrics

Godrej Properties – Gaining from real estate upcycle in top cities

HDFC AMC – Structural bet on the financialisation of savings

 

The brokerage, however, is 'underweight' on metals sector given its weak price and cost volatility, and cement due to margin pressure and weak demand in Tier 2/3 markets. It is also 'underweight' on upstream Oil & Gas stocks given range-bound earnings and regulatory overhang.