Taking stock of Trump tariffs: Where do Indian markets go from here?

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This story belongs to the issue:
May 2025
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This story belongs to the Fortune India Magazine May 2025 issue.

Indices regain lost ground after initial shake-up as Trump softens stance.

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Taking stock of Trump tariffs: Where do Indian markets go from here?
U.S. President Donald Trump Credits: Getty Images

VOLATILITY IN EQUITY markets often creates an opportunity to buy quality stocks at attractive prices. The recent pullback in Indian equities, led by the tangle over U.S. tariffs, is offering investors a chance to buy stocks at cheap valuations. Employing a “buy the dip” strategy in such times is seen as a lower-risk approach to investing compared to entering the market when stock values are inflated at record highs, according to experts.

The Indian share market, in sync with global peers, has had a roller-coaster ride in April, initially on the downside and now, on the upside. In the first week of the month, the BSE Sensex and NSE Nifty50 nosedived over 5.5% each, while the volatility index or VIX (a barometer for measuring market uncertainty) spiked 80% to 22.79, its highest since June 4, 2024, triggered mainly by U.S. President Donald Trump’s tariff announcements.