Tariff uncertainty, Iran tensions, IT stocks: Treat the turbulence as buying opportunity, says Sameer Dalal

Group 1: Tariff and Geopolitical Concerns - The US tariffs have caused short-term market fluctuations, but the agreed baseline tariff rate of 18% is seen as manageable, with a potential interim rate of 15% being beneficial for Indian exporters [1][8] - The escalating tensions between the US and Iran pose a significant risk, as a sustained geopolitical crisis could lead to higher oil prices, impacting India's current account deficit and inflation [2][8] Group 2: Market Outlook and Investment Strategy - Despite market headwinds, the long-term outlook for India remains positive, supported by trade frameworks with the US and EU, domestic tax cuts, and post-budget clarity, with setbacks viewed as delays rather than derailments [2][8] - The IT sector is believed to have largely bottomed out, with approximately 90% of the valuation derating completed, making IT stocks attractive for income-oriented portfolios due to their dividend yields of 5-6% [5][8] - Investors are advised to treat market volatility as an opportunity to accumulate quality stocks at better prices [2][8] Group 3: Banking Sector Insights - The ₹590 crore fraud at IDFC First Bank is considered an isolated incident, not indicative of systemic issues within the midcap banking sector, and the bank remains well-capitalized after raising ₹7,500 crore [6][8] - Smaller private and new-age banks have a structural advantage due to their leaner deposit bases, allowing them to attract deposits more effectively compared to larger banks [6][8] - Among preferred banking picks, AU Small Finance Bank, South India Bank, and CSB Bank are highlighted, despite AU's higher valuation [6][8]