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Domestic Investors Shield Indian Stocks From Tariff Shock

A record surge in brokerage accounts with GST simplification supports market resilience.

Overview

  • Mumbai’s two main equity indexes are up about 10% over six months and have shown little reaction since U.S. tariffs rose to 50%.
  • Domestic retail buyers, mutual funds and insurers have steadied prices as foreign funds pulled back, partly on a rebound in Chinese shares.
  • Foreign ownership is reported near 16%, down from roughly 24% a decade ago, signaling a larger role for Indian institutions.
  • Individual brokerage accounts have surpassed roughly 200 million, with many investors automating contributions into mutual funds.
  • Export‑oriented companies face tariff pressure, and the Finance Ministry has simplified and reduced GST rates to spur spending and offset losses.