August 14, 2025 | Dubai, UAE: In a big turn, India stock market ranking has gone from being Asia’s top choice to its last in just three months, says a new report by Bank of America (BofA). Their August check, on 99 global fund chiefs who look over $183 billion, found that 30% now rate India low – the most of any place in Asia.
This drop happened after India beat Japan in May as the top spot, helped by how well it did when the US first set tariff hikes. Now, hope has faded due to a jump in world stress and weaker market basics in India stock market ranking.
Tariff Increase and Drop in Earnings Affect Mood of India Stock Market Ranking
The India stock market ranking fell when US President Donald Trump made the tariffs on Indian items go up to 50%, naming the ongoing buy of Russian oil by New Delhi. This jump in tariffs came with poor company earnings and high values in the $5.2 trillion market.
Out of country money men have taken about $4 billion out of Indian trades this part of the year alone. Unlike this, Chinese shares – lifted by better growth hopes and a dropping US dollar – did better than Indian trades by eight points in July, the best since February.
BofA’s data shows that the demand for rising markets (EM) is going up. A clear 37% of the managers asked rate EM trades high, the top since February 2023, with nearly half seeing them as low-priced. The MSCI EM index has risen over 16% in dollar bits, doing better than other grown places’ 11% and the S&P 500’s 8.6%.
JPMorgan people have put EM trades higher, talking about good growth looks and nice values – but India did not get help from this change. The fall in India stock market ranking shows how quick moods can change when big and world risks grow.
Home Buyers Help Out
Even with the money going out, home buyers are coming in to help the market. Indian trade funds had a top record of new money, ₹427 billion ($4.9 billion), in July, much from small traders using the low price. Big buyers in India are also upping their part, thinking the drop in India stock market ranking now is just due to world shocks.
“A home push is holding strong,” said a money chief from Mumbai. “Even if out of country moods are low, home stays strong, keeping drops not so bad.”
What comes next is not clear. High values, along with trade stress and slow world demand, mean India stock market ranking might not pick up fast unless things outside change. Money people are watching how New Delhi answers to the tariff problem and gets trust back.
Market minds say the end result will lean on if India can keep up its growth and bring in lasting money despite world hard winds. If trade stress lowers and earnings get better, India stock market ranking could get steady soon.
Outlook for the Rest of 2025
With Japan now at the top of Asia’s trade picks and China in second, the race for money has changed. India now has to work to get back to where it was. India stock market ranking will keep being important for how out of country money people see South Asia’s big place.
While rising markets on the whole are seeing a return of hope, India’s turn shows how weak mood can be when hit with policy shocks. For now, the India stock market place shows a careful way among world chiefs – even as home buyers trust in the long game.
If this change is just for now or the start of a bigger money move will be a key thing to watch in Asia for the rest of 2025.
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