Indian equities surged as markets reopened after an extended weekend, with the NSE Nifty 50 Index rallying by as much as 2.4% on Tuesday in Mumbai, surpassing its April 2 closing level. According to Bloomberg, this rebound makes India the first major market globally to erase losses stemming from the reciprocal tariffs imposed by US President Donald Trump earlier this month.
While a broader index of Asian stocks remains down over 3% since the tariff announcements, India’s swift recovery has underscored its growing perception as a relative safe haven amid ongoing global market volatility, as per the Bloomberg report.
Strong domestic fundamentals
Investors continue to view India’s large domestic-driven economy as better equipped to weather a potential global slowdown compared to peers more directly exposed to US tariffs. The escalating US-China trade war has further positioned India as an attractive alternative for global manufacturing, with India maintaining a conciliatory approach and working toward a provisional trade agreement with Washington, in contrast to Beijing’s retaliatory stance.
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“We remain overweight India in our portfolios,” said Gary Dugan, CEO of The Global CIO Office. “Supported by good domestic growth and aided by a likely diversification of supply chains away from China, Indian equities are seen as a safer bet over the medium term,” he told Bloomberg. Read more
Source: Times of India