Ahmedabad: After a long weekend, the open Indian stock markets on Tuesday saw a strong rise. The Nifty 50 index rose by 2% to cross the closing level 23,332 of April 2. With this bounce, India The world became the first major stock market, which completely compensated the loss caused by US President Trump’s tariff policy. However, the main index of other Asian stock markets are still more than 3%.
Investors are now looking at the Indian market as a safe investment amid global fluctuations. India’s economy is believed to be able to better cope with the potential global recession, while many countries are directly more affected by the American tariffs.
Amid growing trade war between the US and China, India is now seen as an alternative manufacturing center. While China is taking an aggressive stance in response to the US tariff, India has taken a quiet stance and tried to reach a temporary trade agreement with the US.
Global market experts said India’s domestic growth is strong and the possibility of transferring supply chain from China makes India a safe investment option.
The Indian stock market has seen a decline of about 10% in the previous two quarters. This was due to concerns of economic development, high stock evaluation and heavy selling by foreign investors. So far this year, foreign investors have sold more than $ 16 billion in Indian equity, while in 2022 it will be $ 17 billion, which is the highest level so far.
However, there is some relief in the market now as the share prices have become comparatively affordable and hopefully the Reserve Bank will support the economy by reducing interest rates. Additionally, the fall in crude oil prices has increased the enthusiasm of investors.
Although India is not completely safe from American tariffs, its direct effect is much less than other countries. India’s dependence on America is low, especially in the export of goods. If crude oil prices are low then the Indian stock market will also benefit.
According to the data, India will have only 2.7% stake in total American imports in 2023, while China’s stake will be 14% and Mexico’s stake will be 15%. For this reason, India is considered a low -risk market amid global stress.
After the increase in the post tariff increase, the loss of loss in the stock market is first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
