India’s Stock Market Stays Strong Despite US Tariffs, Know - How The Middle Class Is Powering Dalal Street?

Mumbai: The United States recently imposed high tariffs on Indian goods, especially to punish India for buying oil from Russia. These taxes were expected to harm India’s economy and its stock market.

But something surprising happened-India’s stock markets didn’t fall. In fact, Sensex and Nifty rose around 10 percent in the last six months, showing that investors were still confident.

Middle-Class Investors Took Charge

Earlier, foreign investors played a big role in India’s stock market. They would invest large amounts of money, and if they took that money out, the market would fall.

But today, more and more Indian individuals and institutions are investing in stocks and mutual funds. These local investors have become the new strength of the Indian stock market.

Foreign Investors Are Leaving

Foreign investors are pulling out their money from Indian markets for two main reasons:

- China’s stock markets have started doing well, so investors are moving money there.

- The US tariffs are making India less attractive for exports and international trade.

These two reasons are causing foreign investors to look elsewhere for better profits.

Exporters Are Feeling the Pressure

The new US tariffs are hitting Indian exporters hard, especially companies that sell products to the United States. This is also affecting many workers and industries in India.

India’s goal to become a global manufacturing hub, as an alternative to China, is now under pressure. High tariffs make it harder for Indian goods to compete in global markets.

Government Steps to Support the Market

To help the economy, the Indian government has taken some important steps. For example, it recently reduced GST (Goods and Services Tax) rates to boost spending and help businesses.

These steps are helping to balance out the damage caused by the US tariffs and also keeping the confidence of Indian investors high.

More Indians Are Investing in Stocks

Today, more people in India are choosing to invest in the stock market instead of gold or property. This is a big change from the past.

The number of stock trading accounts in India has crossed 200 million, showing that more and more Indians are taking part in investing. This trend is helping to keep the markets stable and growing, even when foreign money is moving out.