Indian Markets Resilient Amid US Tariffs, Reports Bank of Baroda

Amid mounting US tariffs, Indian stock markets exhibited resilience, fortified by strong domestic fundamentals such as robust consumption and recent GST reforms, according to a Bank of Baroda report. Economist Sonal Badhan noted that the markets have likely acclimatized to the tariff uncertainties.

2025 marked a challenging year with the new US administration led by President Donald Trump imposing tariffs on major trading partners and commodities, initially targeting sectors like automobiles and metals and later expanding globally. The report indicates that during the announcement period, US markets suffered the most with indices like Dow Jones and S&P 500 witnessing declines.

Despite these pressures, only a few markets, including India, delivered positive returns from January to April 2025. After a 90-day US tariff pause in April, there was a global market resurgence, with significant gains by September 15. Emerging markets, particularly in Asia and South America, showed strong performance, driven by new bilateral trade deals and improved US-China relations.

(With inputs from agencies.)