The recent easing of tariffs by the United States on India has sparked a rally in the Indian markets and the rupee. Feroze Azeez of Anand Rathi Wealth explains that the impact of this move extends beyond mere sentiment, influencing foreign institutional investors (FIIs) and shaping investment strategies.

The rollback is seen as a positive signal, potentially leading to renewed interest and investment from FIIs. According to Azeez, the markets have reacted favorably, and the sentiment is expected to improve further. Previously, FIIs had been net sellers, but this trend may reverse as the tariff situation improves. He estimates that by February or March 2026, FII activity could turn positive.

Azeez suggests that investors should consider a strategy of buying on dips, and avoid shorting. He also advises investors to stay focused on Systematic Investment Plans (SIPs) and mutual funds. With the easing of tariffs, certain sectors are expected to benefit, making them attractive investment destinations.

While global factors and trade policies play a crucial role, domestic flows continue to be strong, with small-cap funds receiving substantial investments daily. This indicates that Indian domestic players remain positive.

However, caution is advised regarding the IT sector, where Samir Arora of Helios Capital suggests that Indian IT companies are too focused on short-term gains and may be missing structural shifts in global technology spending driven by AI.

In the broader market, while some small-cap stocks like Sudarshan Pharma have shown strong performance, the overall market has experienced volatility. For instance, on February 5, 2026, the Sensex crashed 500 points, resulting in a loss of over ₹2 lakh crore for investors, though this was due to other factors.

Anand Rathi Wealth has demonstrated robust performance, with Feroze Azeez highlighting the company's ability to deliver strong results even in challenging market conditions. While the company anticipates continued growth, there may be some margin pressure due to planned reinvestments in people, technology, and new growth initiatives to sustain a 20% growth rate over the next 10 years. Despite this, Azeez remains confident in delivering 14-15% returns to clients while maintaining a 1-1.5% margin for the company.