New Delhi [India], September 17 (ANI): Indian stock markets fared well even as the country faced US tariffs on its goods, primarily due to the strong domestic fundamentals that include robust consumption and recent GST reforms, according to a Bank of Baroda report.

'We believe markets have now priced in the uncertainty around tariff-related decisions,' the report authored by Economist Sonal Badhan said.

Year 2025 had been rough for the markets, as the new US administration led by President Donald Trump started its term by announcing tariffs on its major trading partners and key commodities. Initially, the tariffs were product-based (automobiles and parts, steel, aluminium), which were later expanded to all countries.

Bank of Baroda noted that between January and April 2025, when the majority of these tariff decisions were being announced, US markets struggled the most. Equity indices (Dow Jones and S&P500) posted negative returns, and their respective market cap fell.

In the same period, only Hong Kong, Brazil, China and India gave positive returns, the report noted.

Post April and until September 15, stock indices have rebounded sharply, and significant gains have been made in their market capitalisation.

This could be attributed to a 90-day pause announced by the US in April 2025, the number of bilateral trade deals negotiated with the US (UK, Japan, Indonesia, Vietnam) and the ongoing truce between the US and China, it added.

Amidst these uncertain times, Bank of Baroda found that stock indices of emerging markets have performed well. 'Vietnam, Hong Kong, China, Brazil and Japan have all registered double-digit increases so far.'

Markets in the UK and Indonesia have also fared well, supported by trade agreements secured with the US.

'Within the US, the S&P 500 has given better returns versus the Dow Jones. Indian markets have also delivered positive returns in these uncertain times,' the report added.

'If we breakdown the period between Jan-Apr'25 and Apr-Sep'25, we see considerable difference in the performance of equity markets. In the initial period (Jan-Apr), when countries and sectors received initial jolt of tariffs, most markets fell. Only stock indices in Hong Kong, Brazil, India, and China were able to deliver positive returns, while all others fell.' (ANI)