India leads global market recovery, Trump tariffs first to rebound with shock

New Delhi: Indian equities increased after the reopening of markets after an extended weekend, with the NSE Nifty 50 index rally, on Tuesday, up to 2.4% in Mumbai, crossed the closing level of April 2 in Mumbai on Tuesday. According to Bloomberg, this rebound is the first major market in India globally to eradicate damage from the mutual tariffs imposed by US President Donald Trump earlier this month.
While a comprehensive index of Asian shares since tariff announcements is more than 3%, India’s rapid recovery has underlined its growing perception as a relative safe shelter amidst instability in the global market.
Strong domestic principle
Investors look at India’s large domestic-operated economy, which is better in the potential global recession season than the comrades coming in contact with the US tariff. The growing US-China trade war has carried forward India as an attractive option for global manufacturing, maintained a consistent approach with India and is working towards an provisional trade agreement with Washington, unlike Beijing’s retaliation.
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Gary Dugan, CEO of Global CIO office, said, “We live overweight in our portfolio.” He said, “Indian equity, supported by good domestic development and aided by a potential diversification of supply chains, is seen as a safe bet in the moderate period,” he told Bloomberg.
Investor Outlook improved
India’s sharp rebounds follow the recession of about 10% of the Nifty 50 in the last two quarters, which slows down economic growth, steep assessment and the ongoing foreign investor outflow. So far this year, foreign investors have sold over $ 16 billion in Indian equity on a net basis, which is close to a record of $ 17 billion in 2022.
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Nevertheless, improvement in investor’s sentiment is a relatively low stock valuation, the expectations of the outrageous rate cuts by the Reserve Bank of India and the fall in crude oil prices-a major positive for India’s import-loving economy.
India was seen as flexible amidst global trade risks
According to Bloomberg data, the Nifty 50 is currently trading 18.5 times more of its 12 -month -earnings, compared to the average of five years of 19.5 in the end of September and 21 of 21 at the end of September.
Society Zenrel SA strategist Rajat Aggarwal said, “India is not untouched, but in a relatively better position amidst the risk of a trade war, its low direct revenue risk is especially given in favor of the goods.” “Indian equity should also benefit if oil prices remain low level.”
Data compiled by Bloomberg suggests that India had just 2.7% of the total American imports last year, 14% of China and less than 15% of Mexico.