In comparison, China—the second-largest equity market—holds a 9% share, while Japan and Hong Kong contribute 5.5% and 4.9%, respectively. India, the fifth-largest equity market globally, has a valuation of $4.8 trillion, accounting for 3.3% of the world market.
Notably, the $5.5 trillion loss sustained by the US equity market in the past month exceeds India’s total market capitalisation.
While uncertainty surrounding trade policies under President Donald Trump has unsettled investor sentiment globally, the US selloff has been driven by the Magnificent Seven, with Tesla’s shares plunging more than 50% from their December highs.
Other stocks in the Magnificent Seven—Apple Inc., Microsoft Corp., Nvidia Corp., Amazon.com Inc., Alphabet Inc., and Meta Platforms Inc.—have fallen between 15% and 20% from recent highs. These seven stocks collectively account for a third of the S&P 500 index and were responsible for nearly half of the index’s recent 10% decline.
According to Gautam Chhaochharia, Head of Global Markets at UBS Securities, global equities, including India, have yet to fully price in the potential impact of new tariffs, particularly if they result in slower global growth.
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“Our house view is that markets worldwide have not factored in these risks,” said Chhaochharia. “If significant tariffs persist for an extended period, they could lead to a negative growth surprise globally.”
Among global markets, Germany’s DAX and France’s CAC 40 have outperformed, posting gains of 20% and 14.3% so far this year. In contrast, the S&P 500 has fallen nearly 4% since the start of the year, while the Nasdaq Composite has declined 8.4% over the same period.
In Asia, Hong Kong’s Hang Seng Index has led the rally with an 18% gain, whereas India’s Nifty 50 is down nearly 2% year-to-date.