Market Outlook - May 2025

Market Update

Month of April globally saw a kind of relief rally once President Trump announced a 90-day deferment of its tariff for all countries except China. This move was looked as a step back vs the aggressive stance USA had on its tariff proposals and reassured the world that based on mutual negotiations, the final tariff is going to be much lower than the headline announcements. Indian equities continued their rise for the second consecutive month with benchmark Nifty index rising 3.5% for the month. Broader markets also joined the rally with midcap and small cap indices gaining 4.7% and 2.2% respectively. All the sectors ended the month in green except for Metals and IT which fell by 5.8% and 3%, respectively. Consumer Durables, Oil & Gas and FMCG were the top performing sectors with performance of 5.7%, 5.4% and 5.2%, respectively. Meanwhile, global markets saw mixed results with Mexico (+6.0%), Indonesia (+3.9%) and Australia (+3.6%) being the best performing markets. On the negative side, US Dow Jones, Hong Kong and Singapore recovered from their lows but ended the month falling 4.6%, 4.3% and 3.5%, respectively.