US president Donald Trump on Tuesday raised the stakes in its trade dispute with China, imposing 10 per cent tariffs on a list of $200 billion worth of Chinese imports. The move sent the global markets lower, prompting China to warn it would retaliate.

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Investors fear an escalating trade war between the world’s two biggest economies could hit global growth and damage sentiment. However, Indian stock market maintained calm. The benchmark indices Sensex and Nifty ended higher, bucking the global trend. 

We have compiled a list of sectors and specific companies where good money could be made as trade war escalates:

1) Pharma sector

Indian pharma companies will gain a competitive advantage over Chinese pharma firms in global market. Meanwhile, China recently reduced tariffs on 28 medicines that it imports from India. Indian pharma companies own large market share in supplying cancer medicines too. 
 
Companies: Cadila, Marksens Pharma and Biocon

2) Textile firms 

India owns largest market share in exports of cheap garments to China, America and Europe. Trade war is expected to double Indian textile firms' market share. India is a big player in cotton yarn export and Polyester export.

Companies: Arvind, Century Textiles

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3) Chemical firms 

China is the biggest player in chemical exports. Trade war will reduce China's market share, thus enhancing opportunities for India, which is Asia's third largest player in chemical export. Rupee depreciation will also benefit chemical firms. 

Companies: Insecticides (India), Dhanuka Agritech, Tata Chemical

4) Rice firms

India is the largest player in rice exports. The government, meanwhile, is planning to cut duties to promote rice exports even more. Rice companies' exports got a boost on the back of rupee depreciation too. Besides, India and China will soon ink a deal on rice exports from India to China. 

Companies: L&T Foods, Kohinoor Foods