Why are global funds flocking to the Indian stock market amid Trump's tariff reinforcement? | Einsmark news

Worldwide funds are throwing money back to India, sends a billion-dollar corporate financing agreements and sends the prices of shares to a seven-month high, as investors bet that the third largest economy of Asia could appear as a winner in President Donald Trump’s trade war. The NSE Nifty 50 index has risen to its highest level since October this week, fueled by optimism that India could be one of the first ones to deal with the US on the basis of Trump. Corporate India seized the momentum: Shapoorji Pallonji Group acquired a $ 3.4 billion credit agreement, and Reliance Industries Ltd. is included in a $ 2.98 billion loan, which highlights the growing appeal of the country’s corporate debt to world investors. What makes global funds on the Indian stock market? Behind this renewed enthusiasm lies a mixture of favorable macro -economic powers. Policymakers in New Delhi are aimed at what they see as a one-time chance to integrate the country deeper into global supply chains. Meanwhile, in Mumbai, the Reserve Bank of India’s Dovish attitude also supports the bullish mood – the yields of bonds traded at their lowest levels in more than three years. “India could be a big winner of Trump 2.0 if he plays his cards right,” said Trinh Nguyen, senior economist at Natixis in Hong Kong. “India does offer a high return in bonds and a decent return on capital for investors in equities.” The shift in sentiment was rapidly among world managers, including that of Franklin Templeton and Federated Hermes. According to a recent survey of a Bofa Securities, local shares have emerged as the most favorable bet under Asian funds investing in the region. After selling more than $ 25 billion to Indian shares between October and February, investors in this quarter plowed more than $ 2.5 billion despite the volatility induced by the trade war and the clashes of India Pakistan. The Nifty Gauge was near a low of more than a low on April 7, as global stocks returned, but is now within 5% of its record high in September. India: A safe bet amid global uncertainty investors are drawn to India as a relatively secure bet during this period of global trade uncertainty, thanks to the country’s more inner economy. As India also faces much lower US rates against Chinese goods levies, it is seen as a viable solution for companies such as Apple Inc. “In the midst of global trade uncertainties, India’s large domestic market, rising middle class and the prospects of a trade agreement with the US will help give the world investment interest in Indian credit,” said Wei Liang Chang, Macree, not the DBS group. The unexpected flare-up in hostilities with Pakistan has served as a reminder of the geopolitical risks that Prime Minister Narendra Modi’s infrastructure ambitions can complicate, which can drive the demand for foreign capital over sectors, ranging from solar to roads. For the time being, investors remain focused on improving the economic prospects of India. “The most important assumption is for an agreement on a US -India trade agreement, together with good external and internal macro stability,” wrote Michael Wan, a senior currency analyst at Mufg Bank, in a note.