Indian stocks struggles to shake off pessimism ahead of tariffs
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Indian equities are likely to extend a rare underperformance to their emerging-market peers as trade tensions with the US show few signs of abating. Come Wednesday, President Donald Trump’s additional 25% tariff on Indian imports — as a punishment for buying Russian oil — is set to take effect. That brings cumulative levies to 50%, higher than export rival China. The overhang from tariff risks, along with a slowdown in economic growth and downgrades in corporate earnings, has already led to foreign outflows from India’s $5.3 trillion market. The MSCI India Index is lagging the MSCI Emerging Markets gauge for a fourth straight month, and has trailed the broader measure by more than 15 percentage points year-to-date. That’s on track to be the worst relative performance by India in more than two decades. Bloomberg “This trade war with the US is critical, so until it is resolved, I don’t expect a catchup,” said Rajeev De Mello, a portfolio ma...