India stands tall among global ruins of stock markets as Trump fires tariff salvos

While global markets have been bleeding red since US President Donald Trump announced his reciprocal tariffs on April 2, India’s equity market has emerged as a rare bright spot with the Sensex and Nifty rising 2.5 per cent and 2.2 per cent, respectively, in local currency terms. In US Dollar terms too, both indices have registered growth of over two per cent, as reported by Bloomberg.

Among 16 major markets globally, India is the only equity market where stocks have not just recovered their initial losses suffered right after the announcement but also recorded growth beyond pre-announcement levels.

Even during this week, the Indian market outperformed the likes of the Shanghai Composite and Japan’s Nikkei.

Global markets in titters

Global stock markets have taken a sharp hit following the announcement of fresh US tariffs, prompting concerns among investors. In the US, major indices have slumped — the S&P 500 has dropped 7 per cent and the Dow Jones is down 6 per cent amidst heightened anxiety over trade and economic uncertainty.

European markets have mirrored the decline. France’s CAC has fallen by 7.5 per cent, Germany’s DAX is down 5.4 per cent, and the UK’s FTSE 100 has slipped 3.9 per cent. The impact has been equally pronounced in Asia, where China’s CSI 300 has lost 3.9 per cent, and Hong Kong’s Hang Seng Index has tumbled 7.8 per cent. Taiwan’s stock market has seen the steepest fall in the region, down 8.4 per cent. Japan’s Nikkei is off by 3.8 per cent, and South Korea’s Kospi has dropped 1.4 per cent.

Southeast Asian markets have also struggled. Indonesia’s Jakarta index has declined 1.7 per cent, the Philippines is down 1.8 per cent and New Zealand’s NZX 50 has fallen 2.1 per cent In Latin America, Brazil’s Ibovespa has declined 2.2 per cent.

According to experts, the positive sentiment around a potential US-India trade deal has reinforced confidence among investors in Indian equity market.

“A major factor supporting sentiment is the market’s growing anticipation of a bilateral trade agreement between the US and India. India never went down the road of confrontation. No reciprocal tariffs, no public criticism,” said Hiren Ved, Director and CIO of Alchemy Capital Management. “Instead, India has been ahead in talks and could be among the first nations with which the US signs a trade pact.”