Market expert Vaishali Parekh has picked three stocks for investors to consider buying today, even as worries grow over a proposed 50 percent tariff on Indian goods by former US President Donald Trump. These recommendations come as the Nifty 50 index fell below key support levels, closing at 24,712 on August 27, 2025, amid broad selling pressure.
The tariff plan, set to take effect soon, has sparked fears of trade disruptions, hitting export heavy sectors hard. Parekh, Vice President of Technical Research at Prabhudas Lilladher, shared her views in a recent update, focusing on stocks that could hold up well despite the market dip.
Market Mood Turns Sour After Tariff News
The Indian stock market took a hit on August 27, 2025, with the Nifty 50 dropping 255 points to end at 24,712. This slide pushed the index below its 50 day moving average support at 24,850, signaling weaker sentiment.
Investors sold off shares in real estate, public sector banks, pharmaceuticals, and small cap firms, leading the losses. Midcap and energy stocks also fell by more than one percent each. Metal, infrastructure, oil and gas, and private bank stocks stayed in the red, showing widespread caution.
The India VIX, a measure of market fear, rose over three percent, pointing to higher risk. This reaction stems from reports of Trump’s draft proposal for steep tariffs, which could raise duties on Indian exports to 50 percent. Such a move might hurt India’s trade balance, as the US is a major buyer of Indian goods worth billions each year.
Geopolitical tensions added fuel to the fire, with global markets watching closely. Yet, some experts note that past tariff threats have not always led to full implementation, and India could negotiate or shift focus to other markets.
Why These Stocks Stand Out Now
Parekh highlights three picks that look promising for buying today: Aditya Birla Fashion and Retail (ABFRL), Devyani International, and ITC. She sees potential in these amid the uncertainty, based on technical charts and market trends.
ABFRL, a key player in fashion and retail, has shown resilience in recent sessions. Despite textiles facing tariff risks, its strong domestic focus and brand strength could help it weather the storm.
Devyani International, which runs quick service restaurants like KFC and Pizza Hut in India, benefits from steady consumer demand. As people turn to everyday spending, this stock might see less impact from export related woes.
ITC, a giant in fast moving consumer goods, tobacco, and hotels, emerged as a bright spot. On August 27, FMCG stocks rose about one percent while others fell, making ITC a defensive choice.
Parekh advises watching support levels closely. For Nifty, she points to 24,500 as a key floor, and a break above 25,000 could lift spirits.
How Tariffs Could Shake Indian Exports
The proposed 50 percent tariff targets a wide range of Indian exports to the US, valued at around 45 billion dollars yearly. Sectors like textiles, gems and jewelry, seafood, and auto parts stand to lose the most, as higher costs could make them less competitive.
Analysts predict job risks in export hubs such as Surat for diamonds, Tirupur for garments, and Andhra Pradesh for shrimp. Small businesses might struggle, but larger firms could adapt by seeking new markets in Europe or Asia.
On the flip side, pharmaceuticals and electronics might escape heavy hits, thanks to existing trade deals. Some see opportunities for India to boost local manufacturing under programs like Make in India.
Here is a quick look at affected sectors:
| Sector | Export Value to US (Approx. in Billion USD, 2024) | Potential Impact |
|---|---|---|
| Textiles | 10 | High, due to low margins and competition from Vietnam |
| Gems and Jewelry | 12 | Severe, with possible shift to other buyers |
| Seafood | 5 | Medium, affecting coastal jobs |
| Auto Parts | 7 | Moderate, as firms diversify |
| Pharmaceuticals | 15 | Low, protected by agreements |
This table shows why investors are eyeing domestic focused stocks like Parekh’s picks.
Bank Nifty Outlook and Broader Advice
Bank Nifty also weakened, closing below its key support at 55,000 on August 27. Parekh warns of a possible drop to 53,500 if selling continues, but a climb above 55,700 could signal recovery.
She stresses the need for caution, urging investors to track global cues and tariff updates. For now, the overall trend holds if Nifty stays above 24,500.
In recent months, similar tariff talks in July 2025 caused brief dips, but markets rebounded on strong earnings. With India’s economy growing at over six percent in 2025, long term bulls remain hopeful.
Experts suggest diversifying portfolios with a mix of defensive and growth stocks. Monitoring US India trade talks will be key in the coming weeks.
What Investors Should Do Next
Parekh’s recommendations focus on stocks with solid charts and less tariff exposure. ABFRL targets a buy range of 320 to 325 rupees, with upside to 350. Devyani International eyes 180 to 185, aiming for 200. ITC suggests buying at 490 to 495, with potential to 520.
These picks align with a shift to safer bets like FMCG and consumer services. However, she reminds that markets can swing, so stop losses are vital.
- Set stop losses below recent lows to protect gains.
- Watch for Nifty rebounds above 25,000 for buying signals.
- Consider dollar strength, as tariffs could boost the US currency and pressure emerging markets.
As tariff details unfold, staying informed is crucial. Share your thoughts on these stock picks in the comments below, and pass this article to fellow investors for their views.
