India stock market rally during global sell-off is making waves around the world, as Sensex jumped more than 1,300 points and Nifty almost 450 on Friday, defying the sharp decline in Asia. While Japan, South Korea, and Australia markets fell as US-China trade tensions flared again and Trump announced surprise tariff increases, India’s shares rallied.
The rally came after Washington unexpectedly suspended new tariffs on India for 90 days, lifting investor mood. Supported by robust domestic fundamentals, favorable economic indicators, and selective international respite, India is shaping up as a beacon of hope in a turbulent international financial environment.
Asian Bloodbath vs Indian Optimism
Asian markets were severely affected on Friday. Japan’s Nikkei 225 declined more than 5.4%, wiping out the day before’s gains following Trump’s tariff flip. The Topix fell likewise, while South Korea’s Kospi and Australia’s S&P/ASX 200 both tumbled sharply. Risk sentiment vanished following Trump’s declaration of new tariffs — 145% on certain Chinese goods — and then suddenly suspending most of them, except against China.
But India was the exception. The Sensex surged 1,353.59 points to 75,200.74, while the Nifty 50 shot up 443.70 points to 22,842.85 by morning trade. Merchants received the 90-day tariff holiday for Indian products positively, seeing it as an indicator of strategic partnership in the age of decoupling.
Domestic Strength Fuels Confidence
India’s resilience is not a reflex response to outside news. The country’s robust macroeconomic profile, solid corporate bottom lines, and unyielding government policy support have not dissuaded investors. Foreign institutional investors even became net buyers, perceiving India as a haven in a world riddled with uncertainty.
Further, India’s relative immunity from Chinese supply chains and sustained drive towards manufacturing autonomy (through initiatives such as PLI) further enhances its attractiveness.
A Decoupling in the Making?
This divergence presages more than a one-day rally. It indicates a larger shift — India’s increasing capacity to decouple from the vagaries of the global market. Even as short-term ripples of US trade moves will persist, India’s underlying economic story is one of self-reliance, reform, and global positioning.
With COP30 and G20momentum in its favor, and in the midst of a global rush for stable markets, India’s equity resilience could be but an omen for a bigger decoupling yet to come.
