Amid trade war concern, India’s market is resilient, with capital goods and utilities leading the way- Union AMC
Indian Stock Market: Amid trade war concerns, India’s market remains resilient, says Union AMC. The capital goods and utilities are leading the way having seen sharp gains during last one month
Indian Market resilience amid trade war concerns
Union Mutual Fund’s April 2025 State of the Market & Outlook report highlights notable sectoral divergence in Indian stocks as trade restrictions and geopolitical unrest change international markets. While the IT sector index has see 1.5% correction month on month have been key underperformer in the recent past, on year on year basis Auto sector has seen 2.9% year on year correction trailing other key performers.
Key outperformers
During the past one month despite trade war threats leading to volatility the markets the Utilities have risen 15.1% month on month, Capital Goods index is up 13.5% month on month, Healthcare has risen 8.4% Month on month and Financial Services also gained 8.0% Month on month.
Other key performers include Oil & Gas that is up 11.3% month on month, Metals having risen 10.1% month on month and Bankex is up 8.6% month on month.
With notable sector-wise variances, the thorough analysis reveals that India’s benchmark Nifty 50 generates 6.3% monthly returns (5.3% YoY).
With NIFTY Midcap 100 rising 10.2% (7.8% in local currency) and NIFTY Small cap 100 rising 11.9% (9.5% in local currency) over the previous month, midcap and small cap stocks continued to excel.
Divergence in global markets
With emerging markets like India and the BRIC countries outperforming Western markets, there has been a notable divergence in the global equities markets. While the NASDAQ Composite Index fell 8.2% over the same time period, the MSCI India Index produced strong returns of 9.2%. Due to robust local demand and stable policies, India is comparatively immune to interruptions in international commerce.
Harshad Patwardhan, Chief Investment Officer, Union Asset Management Company Private Limited (Union AMC) in a statement said that “While short-term challenges such as global geopolitical tensions and trade-related uncertainties persist, India’s long-term macroeconomic fundamentals remain strong. Healthy corporate and banking sector balance sheets, prospects of a demand revival fueled by tax relief and expanded welfare schemes, and the potential onset of a new private capex cycle are key positives driving our outlook.”
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