Indian Markets Outperform Globally Amid April Volatility and Trump’s Tariff Reversals

India Stands Out as One of the Most Resilient Major Markets

Amid heightened global market volatility triggered by US President Donald Trump’s announcement of reciprocal tariffs and subsequent partial rollback, India has emerged as one of the top five most resilient major stock markets, with the Nifty and Sensex falling less than 3.5% in April so far. The performance underscores investor faith in India’s economic fundamentals despite global uncertainties.

While the Indian indices did witness sharp intraday falls post-tariff announcements, the April 11 relief rally—sparked by Trump’s 90-day pause on tariffs—helped offset some of the losses. Notably, Sensex rebounded over 1,300 points in a single session, climbing to 75,158, though still below its pre-tariff high of 76,617. The Nifty 50, meanwhile, is hovering around 22,821, gaining nearly 2% since the temporary pause announcement.

Highlights:

• Sensex down 3.49% and Nifty 3.5% in April so far.

• Ranked among the top 5 most resilient global markets this month.

• April 4: Sensex falls 2,000+ points after India tariff inclusion.

• April 11: Sharp rally post 90-day tariff relief announcement.

Global Markets Tumble Amid Trump Tariffs and Rising China Tensions

US Markets: Tech Under Pressure, Recession Fears Loom

The US markets faced heavy selling as Trump’s tariff rhetoric and retaliatory threats from China amplified fears of a recession. The Nasdaq Composite index led the decline, plunging over 13% between April 2 and April 8, its steepest drop in years. The S&P 500 and Dow Jones indices each fell over 6% in April so far, with some respite after Trump’s pause—but the broader impact of a full-scale trade war with China remains a persistent overhang.

Highlights:

• Nasdaq: -13.1% since April 2.

• S&P 500: -6.13%, Dow Jones: -5.73% in April.

• 90-day pause provided limited bounce due to ongoing China tensions.

China Markets: Tariff Escalation Prompts Sharp Correction

China’s equity indices reacted strongly to Trump’s decision to raise tariffs on Chinese imports to 145%, followed by China’s retaliatory measures. The Hang Seng index crashed 9.25%, making it the worst-performing major global index this month. The CSI 300, a broader index covering Shanghai and Shenzhen stocks, also slid over 4%.

Highlights:

• Hang Seng: -9.25%, worst among global peers.

• CSI 300: -4.39%.

• Rising risk of broader decoupling with US puts additional pressure.

Asian Markets Show Mixed Resilience

Other major Asian indices displayed varying degrees of vulnerability. Japan’s Nikkei and South Korea’s KOSPI emerged largely unscathed, declining just 0.87% and 0.61%, respectively—reflecting relatively low direct exposure to US-China tariff escalation. However, Indonesia’s Jakarta Composite (-4.76%) and Taiwan’s TAIEX (-3.57%) suffered greater drawdowns, partly due to regional volatility and dependence on trade.

Highlights:

• Japan Nikkei: -0.87%.

• South Korea Kospi: -0.61%.

• Indonesia Jakarta Composite: -4.76%.

• Taiwan Taiex: -3.57%.

European Markets and Brazil Also Face Turbulence

European stock markets, already pressured by tepid growth and geopolitical uncertainty, fell sharply amid the Trump tariff escalation. The UK’s FTSE 100 dropped 6.56%, while France’s CAC lost 3.82% and Germany’s DAX declined 2.56%. Meanwhile, Brazil’s Bovespa joined the global downtrend with a fall of 5.96%, tracking risk-off sentiment and commodity headwinds.

Highlights:

• UK FTSE 100: -6.56%.

• France CAC: -3.82%, Germany DAX: -2.56%.

• Brazil Ibovespa: -5.96%.

Global Index Performance in April (So Far)