Invest with conviction, not emotion: Porinju advises patience amid geopolitical noise

"Let’s focus on the opportunity. As I said, companies oriented toward the domestic market and those using technology to drive better growth and improve product and service quality — there are many such opportunities. So, there’s no need to panic. Stay invested. Don’t get too excited. Be patient, give it time, and let things cool down," says Porinju Veliyath, Equity Intelligence India.

Tell us some themes that you are looking at.
Porinju Veliyath: The themes remain the same. It's about domestically driven businesses. India is still an emerging and massive domestic market. So, we're not heavily dependent on exports and imports of goods, to be very frank. Yes, they matter — especially for sectors like textiles and others where we have strong manufacturing and export capabilities. Some of those companies have already sobered down.

Now, Trump has imposed 25% to 50% tariffs — and by this evening, he might say something else, maybe even 100%. This is all part of a passing phase in a tariff war. He doesn’t always speak with clarity; it may just be a hard bargain with India. I understand the US delegation is visiting India by the end of the month. So, he might be making such statements without any sense of responsibility — and that’s the biggest problem for the world today. The leader of the world’s biggest nation is speaking without responsibility or thoughtfulness. It’s a global crisis, but again, just a passing phase.

Let’s focus on the opportunity. As I said, companies oriented toward the domestic market and those using technology to drive better growth and improve product and service quality — there are many such opportunities. So, there’s no need to panic. Stay invested. Don’t get too excited. Be patient, give it time, and let things cool down.

Since you are bullish on domestic-facing themes, would consumption now look attractive? Especially since staples have seen some recovery in Q1 and earnings haven’t been too bad — would you consider revisiting the internal consumption space, since it seems to be emerging from a slump?
Porinju Veliyath: To be very frank, I’m not currently focused on any specific themes or sectors. I believe investors should now look at the macroeconomic picture. We are going through a fantastic phase — macro conditions are very comfortable. We’re still growing at around 6.5%, interest rates are stable and may come down further, inflation is under control, and our fiscal deficit is in a healthy range. All of this is very positive.

Fortunately, we also have strong leadership and a stable government that is not just playing politics — they’re getting things done. I really appreciate how our External Affairs Minister and other ministers are acting very responsibly. India has always been a responsible nation — not just recently. We’ve maintained a policy of non-alignment and the freedom to buy oil from whoever we want. Our energy security is crucial. We have to feed 1.4 billion people, 18% of the world’s population. We cannot simply try to please a childish US President.

Our responsibility is toward our own country. We will do what is required for our growth and development. We still have a long way to go economically, with very low per capita income. So, we have no choice but to grow — and no one can stop that.

Fair point. India is a massive economy and cannot rely solely on the US. But one sector that does depend heavily on the US is pharma. You’ve been vocal about select companies in this space, especially those with strong growth potential. Given the tariff uncertainty, do you think pharma will be spared from further announcements? Or is this correction an opportunity to buy?
Porinju Veliyath: I fully agree. While there is a lot of tariff-related noise, pharma has mostly been spared so far. But we can’t predict what might happen in the next few weeks or months. Even this evening, Trump could say something irrational. So, we have to ignore short- to medium-term noise — the tariff war and all the ongoing rhetoric.

Pharma is an area where India has a huge competitive advantage, both in manufacturing and global supply. We have excellent pharma companies with strong R&D. I had mentioned Piramal Pharma earlier — we’ve been holding it in our PMS for a long time, and it’s been highly rewarding.

After this tariff news, I took another look at the company’s segments — where they manufacture and where they sell. I found that even if exorbitant tariffs are imposed, Piramal Pharma still looks strong. I'm just giving that as an example — it's one of our core holdings in our portfolio management service.