Tariff optimism mostly priced in, time to book profits, says expert

JM Financial MD Ashu Madan believes the market rally has already factored in most of the positive tariff news, advising investors to stay cautious and book recent trading profits.

“Even when things look good, this is a market that buys on rumours and sells on rumours,” he said, adding that nearly 75% of the tariff-related optimism is already priced in. “We might see a brief jump when the actual news comes, but it’s wise to take some money off the table.”

Madan pointed out that while some well-known stocks remain 20–30% below their peaks, lesser-followed names — especially in the IT sector — have surprised with strong results. “We’ve seen good action in select banks and IT stocks where expectations were low,” she noted.

He also highlighted that markets have remained stable, with no major earnings shocks over the past few quarters, which is a positive sign. However, he cautioned that investors should review their portfolios once the tariff news is officially out.

“For the short term, booking profits makes sense. But for the medium to long term, investors should focus on consumption-driven themes and digital platforms,” Madan advised.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)