India is first major market to erase losses from April 2 tariffs

Key Points

  • Indian stocks rallied, erasing losses from US tariffs, with the NSE Nifty 50 Index climbing 2.4% on Tuesday.
  • Investors see India as a safe haven due to its robust domestic economy and potential to withstand global economic downturns.
  • India is viewed as an alternative manufacturing hub amidst the Sino-American trade war, with a conciliatory approach towards the US.

Summary

Indian stocks experienced a significant rebound, with the NSE Nifty 50 Index surpassing its previous levels after a long weekend, erasing losses triggered by US President Donald Trump's reciprocal tariffs. This recovery positions India as the first major equity market to bounce back from the tariff-induced downturn. Investors are increasingly viewing India as a safe haven due to its strong domestic economy and its potential to better withstand a global recession compared to other nations facing higher tariffs. Amidst the intensifying trade war between the US and China, India's conciliatory stance and efforts to negotiate a trade deal with the US highlight its attractiveness as an alternative manufacturing base. Despite a recent selloff due to concerns over economic growth, high valuations, and foreign fund exodus, optimism is fueled by lower valuations, expected interest rate cuts, and falling crude oil prices, which are significant for India as a major importer.

yahoo
April 15, 2025
Stocks
Read article

Related news