At the hindsight of the US President Donald Trump’s menace of imposition of reciprocal tariffs on India and the resultant impact on India’s stock market, retail investors are bewildered which sectors they should avoid and which sectors they can consider for long term investing. Under consideration of the current global trade scenario, stock market experts advise worried investors to look at banking and agricultural sectors for investment purpose. While, sectors which they think retail investors should avoid are amongst the following: Sectors to avoid: Eg, according to the corporate research analyst, PHD Capital, and, brokerage firm, Lemonn Markets investors can consider banking sectors. PHD Capital, research head, Pritam Sardar, says that factors like interest rate cuts, recent correction in NPAs and cheap valuations work in favour of the banking sector. PHD Capital's Pritam Sardar: ​​​​Both PSU and private bank stocks are beaten down. These haven’t rallied in past many days He also gave his favourite picks from the relevant sectors. These subsume the following: PHD Capital's favourite financial picks: The research analyst also gave target prices on two of the scrips. Axis Bank, HDFC Bank are our favourite banking picks: PHD Capital On Axis Bank, the ace investor has given Target Price (TP) of ₹1,175 per share. He has suggested investors to keep a strict stop loss of ₹870 apiece. As per Wednesday's closing price of ₹1,011 per share, the Axis Bank TP signifies 16% upside. Buy call on HDFC Bank While, on the HDFC Bank, he has set the TP of ₹2,050 and stop loss of ₹1,550. As per Wednesday's closing price of ₹1,726 apiece, the ace investors sees 18% upside on the counter. Banking, consumer focused Cos better placed: Lemonn Markets Brokerage firm, Lemonn Markets, research analyst, Satish Chandra Aluri, has also advised that investors can consider private banks and consumer focussed companies at the hindsight of the global trade uncertainties. Aluri gave a major reason behind throwing his weight on the banking sector. According to him, the India’s central bank’s recent slashing of the rates can drive loan demand at the benefit of the banking stocks. Further bolstering his stance on the banking sector, Lemonn Markets' Satish Aluri: RBI recently delivering the first rate cut could drive loan demand and this is beneficial for private banks where the balance sheets are healthy and risks of NPAs low Aluri suggested investors to focus on companies with robust balance sheets, low debt levels, and strong domestic demand. According to him, such companies are better positioned to weather international trade disruptions. On the other hand, he has advised that sectors with US and international export exposure can be avoided looking at the uncertainties regarding imposition of the reciprocal tariffs by President Trump. Sebi Registered Investment Advisory, Mantri Finmart, founder, Arun Kumar Mantri also thinks textiles, pharmaceutical, IT and steel sectors will be most impacted by the reciprocal tariffs. Accumulate quality stocks on every major decline: Mantri Finmart Albeit, Mantri has suggested buy on dips strategy for the investors. Mantri Finmart's Arun Mantri: Investors should have cautious approach for next one month till the tariffs comes into effect and accumulate quality stocks on every major declines In the recently concluded two day US trip of Prime Minister Narendra Modi both the heavyweight countries signed an agreement to more than double bilateral trade size between them in next five years. India-US trade pact to benefit agricultural sector: Mantri Finmart Mantri also threw his weight behind the agricultural front as he things both the countries working together to increase trade would prove to a boon for this segment. Since, September 2024, India’s domestic equities have had a very rough phase. Benchmark indices have depleted around 12% since then.