India Becomes First Stock Market Globally To Recover From Trump’s Tariff-Induced Losses—Here's How It Happened

The Indian stock market has made a global first by completely recovering all losses induced by Donald Trump's announcement of reciprocal tariffs, NDTV reported.

The market experienced a surge as trading recommenced following an extended weekend due to the observance of Ambedkar Jayanti on Monday.

During today's (15 April) trading session in Mumbai, the Nifty 50 index of the National Stock Exchange (NSE) saw a significant increase of up to 2.4 per cent. This surge restored the index to its position on 2 April, the day when President Trump implemented the executive order on tariffs.

A Bloomberg report suggests that global investors are considering Indian markets as a "relatively safe" option in the face of worldwide instability due to Trump's punitive actions towards both allies and adversaries.

The report indicated that, due to its vast population of over 1.4 billion individuals and substantial domestic investors, India's markets possess a significantly higher ability to resist a potential worldwide recession.

CEO of The Global CIO Office Gary Dugan told Bloomberg, "We remain overweight India in our portfolios." Explaining the reason, he said, Indian markets are "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."

For a significant period, Indian markets have managed to limit Chinese investments, resulting in any substantial effects on China having a minimal impact on India, unlike other global markets. The escalating trade war between America and China has thrust Indian markets and the country's investment potential into the international limelight.

The manufacturing industry in India is rapidly growing, positioning the country as a potential alternative to China as a manufacturing hub. Unlike Beijing, which has chosen to engage in a trade war with Washington, New Delhi has taken a more conciliatory approach.

A mutually beneficial trade agreement between India and the United States is in the advanced stages of negotiation, a move that is perceived worldwide as more adaptable and flexible compared to China's stance.