India’s stock index is growing steadily
India’s stock index is one of the best in the region. Its growth rate far surpasses that of other Asian countries.
According to a Bank of America study, fund managers increasingly view India as the most promising Asian market. Participants in the survey noted the country’s strong position in the infrastructure and consumer sectors. While Japan has traditionally led such rankings, India has now taken the top spot.
The country’s attractiveness has grown significantly amid changes in supply chains. Additionally, growing trade tensions in the global market favor India.
The BofA study included a survey of 109 fund managers. Together, these representatives manage assets worth US$234 billion. The results were as follows:
– 45% of respondents consider India to be the most promising market in the Asian region;
– Japan took second place, with 39% of respondents preferring its market;
– 6% of managers consider China to be an interesting destination;
– Thailand turned out to be the least promising in terms of further fund development.
Domestic market trends
Domestic trends also favor India. The value of local companies’ shares has risen significantly since the U.S. introduced new import tariffs. Against the backdrop of global economic uncertainty, India appears to be a stable and predictable jurisdiction. Experts note stable economic development, growth in domestic demand, and high activity in the consumer sector. Unlike many other countries in the region, India focuses more on the domestic market, making it less vulnerable to external shocks.
These circumstances are increasing interest from international investors. Foreign investments in Indian companies are growing in the market. Consequently, India’s key index, the Nifty 50, has outperformed those of other leading regional economies. The exceptions were Japan and Indonesia.
Stock market outlook
The Indian stock market quickly recovered from the recent downturn caused by the escalation of the conflict with Pakistan. In April 2025, a terrorist attack occurred in Kashmir, once again heightening geopolitical tensions between the two countries. Within 20 days, however, the parties reached an agreement, and the situation stabilized. This positively affected investor sentiment, causing the share prices of Indian companies to rise rapidly.
Local businesses showed an increase in revenue in the first quarter, and this trend continues. According to Sanford C. Bernstein, Indian companies’ shares could rise another 8%. This boosts liquidity and investment demand, especially in rural areas.
Moreover, the Indian government has cut taxes, which is a further positive sign for the economy. Given these circumstances, international investment funds are looking at opportunities in the Indian market. Of particular interest is participation in infrastructure projects, which are considered a key area for long-term investment.
