Amid trade war concerns, India’s market is resilient, with capital goods and utilities leading the way- Union Asset Management Company

Union Mutual Fund's April 2025 State of the Market & Outlook report highlights India's stock market resilience amidst global trade war concerns. Despite volatility due to trade restrictions and geopolitical unrest, India's market remains robust, driven by strong performance in certain sectors. The Utilities sector led with a 15.1% rise month on month, followed by the Capital Goods index, which gained 13.5%. Other notable performers include Healthcare (up 8.4%), Financial Services (up 8.0%), Oil & Gas (up 11.3%), Metals (up 10.1%), and Bankex (up 8.6%). On the broader market front, the Nifty 50 delivered a solid 6.3% monthly return (5.3% YoY). At the same time, mid- and small-cap stocks also excelled, with Nifty Midcap 100 rising 10.2% and Nifty Small Cap 100 rising 11.9%. 

The report also points out a divergence in global markets, where emerging markets like India and Brazil, Russia, India, and China (BRIC) nations have outperformed Western markets. While the National Association of Securities Dealers Automated Quotations (NASDAQ) Composite Index fell 8.2%, the Morgan Stanley Capital International (MSCI) India Index produced strong returns of 9.2%. India's resilience can be attributed to strong local demand, stable policies, and a favourable macroeconomic environment shielding it from global trade disruptions. Chief Investment Officer at Union Asset Management Company, Mr. Harshad Patwardhan, stated that despite short-term challenges such as geopolitical tensions and trade uncertainties, India's long-term fundamentals remain strong, with healthy corporate and banking sector balance sheets, a potential demand revival, and the onset of a new private capital expenditure cycle as key growth drivers. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.