The Nifty Index surged to 23,332 on April 2nd, surpassing its intra-day high.

• Today, the Nifty Index rose by 2%, while other Asian markets continue to struggle amid global tensions. India is being seen as a lower-risk market.

Ahmedabad: On Tuesday, following a long weekend, Indian stock markets opened with significant gains. The Nifty 50 Index rose by 2%, crossing its April 2nd closing level of 23,332. With this increase, India became the first major market globally to recover losses caused by US President Trump’s tariff policies. However, key indices in other Asian markets remain down by over 3%.

Amid global market fluctuations, investors are now looking at the Indian market as a safe haven. India’s economy is seen as more capable of withstanding a potential global slowdown, while many countries are directly impacted by the US tariffs.

As the US-China trade war intensifies, India is increasingly viewed as an alternative manufacturing hub. While China has taken an aggressive stance in response to US tariffs, India has adopted a calm approach and is working towards negotiating a temporary trade agreement with the US.

Global market experts have noted that India’s domestic growth remains strong, and the possibility of supply chains shifting from China to India makes it a safer investment option.

In the past two quarters, Indian stock markets experienced a nearly 10% decline. This was attributed to concerns over economic growth, high stock valuations, and heavy selling by foreign investors. Foreign investors have sold more than $16 billion worth of Indian equities this year, compared to $17 billion in 2022, which was the highest on record.

However, there is now some relief in the market as stock prices have become relatively cheaper, and there are expectations that the Reserve Bank of India will cut interest rates to support the economy. Additionally, a decline in crude oil prices has helped boost investor sentiment.

Although India is not entirely immune to US tariffs, its direct exposure is much lower than that of other countries. India’s dependence on the US, especially for goods exports, is relatively minor. If crude oil prices remain low, Indian stock markets will also benefit.

According to data, India’s share in total US imports was just 2.7% in 2023, compared to China’s 14% and Mexico’s 15%. For this reason, amid global tensions, India is being considered a lower-risk market.