Mumbai— The Nifty index has posted a 6.8% year-to-date gain as of June 25, reflecting steady investor confidence amid a turbulent global economic environment, according to the latest NSE Market Pulse report.
The index rose 1.7% in May and added another 2% in June, continuing its upward trend despite rising global trade tensions, geopolitical conflicts, and a surge in protectionist policies that have rattled markets worldwide.
India’s market performance stands out at a time when much of the world is facing economic fragmentation and volatility. The report credits this resilience to falling inflation, strong foreign exchange reserves, and timely government and central bank interventions.
In the first half of 2025, global economies have struggled with rising tariffs, broken supply chains, and ongoing conflicts in Ukraine and the Middle East. These disruptions have driven up production costs and raised inflation concerns. The International Monetary Fund has warned that such trade shocks could have longer-lasting damage than the COVID-19 pandemic.
In response, the Reserve Bank of India (RBI) cut the repo rate by 50 basis points to 5.5%, capitalizing on a sharp drop in inflation, which fell to just 2.8% in May. A timely and well-distributed monsoon has further improved rural sentiment and boosted early Kharif sowing, the report noted.
India’s broader economic indicators paint a mixed picture. Industrial output and credit growth have slowed, but robust domestic demand—evident in non-oil, non-gold imports—continues to support overall economic activity.
On the corporate side, fourth-quarter earnings for FY25 showed modest improvement. While revenue growth remained in the single digits, profit margins expanded, particularly for large-cap companies, due to lower input costs and operational efficiencies.
Despite beating earnings estimates, analysts have revised FY25 and FY26 forecasts downward, citing concerns about how global volatility could weigh on Indian exports and business sentiment.
India’s capital markets have remained vibrant. Nine initial public offerings (IPOs) in May raised over ₹5,600 crore, and investor activity rebounded. Gujarat became the third state to surpass 10 million investor accounts.
Systematic Investment Plan (SIP) inflows also hit a record high of ₹26,688 crore in May, underscoring growing confidence among retail investors. (Source: IANS)
