Key Points

In May alone, the index gained 1.7 per cent, followed by a 2 per cent rise in June.

This performance is notable given the backdrop of rising global trade tensions, geopolitical conflicts, and increasing protectionism that have unsettled markets around the world.

Even as the global landscape becomes more fragmented and volatile, India’s economy and markets have shown strong resilience.

Supported by falling inflation, robust forex reserves, and timely policy measures, the Indian market continues to maintain a sense of stability that stands out globally, the report said.

In the first half of 2025, world economies have grappled with tariff hikes, broken supply chains, and ongoing conflicts in Ukraine and the Middle East.

These challenges have pushed up production costs and inflation concerns. The IMF has warned that the global trade disruptions could be more damaging than the COVID-19 pandemic.

Amid this, the RBI acted quickly by cutting the repo rate by 50 basis points to 5.5 per cent, taking advantage of a sharp drop in inflation, which was just 2.8 per cent in May.

A timely monsoon has further boosted rural sentiment and early Kharif sowing, the report added.

India’s macroeconomic indicators present a mixed picture. While industrial output and credit growth have slowed, strong domestic demand -- evident in non-oil, non-gold imports -- continues to support the economy.

On the corporate front, earnings for the fourth quarter of FY25 showed mild improvement.

While revenue growth stayed in single digits, profit margins improved, especially for large-cap firms, due to lower input costs and better efficiency.

However, despite beating earnings expectations, analysts have trimmed FY25 and FY26 forecasts, indicating caution over global volatility’s potential impact on Indian exports and overall business performance.

India’s capital markets remained active, with nine IPOs raising over Rs 5,600 crore in May, as per the report.

Investor registrations bounced back, with Gujarat becoming the third state to cross one crore investor accounts.

SIP inflows hit a new high of Rs 26,688 crore, showing rising trust among retail investors.

- IANS