Indian stock markets managed to post “positive returns” in 2025 despite sweeping US tariffs, supported by strong domestic fundamentals, resilient consumption, and recent GST reforms, according to reports.“We believe markets have now priced in the uncertainty around tariff-related decisions,” noted Bank of Baroda economist Sonal Badhan in a report.Other markets, including the UK and Indonesia, also saw positive momentum due to secured trade agreements with the US. “Within the US, the S&P 500 has given better returns versus the Dow Jones. Indian markets have also delivered positive returns in these uncertain times,” the report said. The year started turbulently for global markets, as the new US administration under President Donald Trump imposed tariffs on key commodities and products, including automobiles, steel, and aluminium. Initially product-specific, the tariffs were later expanded to include multiple countries. Between January and April 2025, when most tariff decisions were announced, US markets were hit hardest, with equity indices such as the Dow Jones and S&P 500 posting negative returns and falling market capitalisation.However, India, along with Hong Kong, Brazil, and China, bucked the trend, delivering positive returns during this initial period. Post-April, until September 15, global markets rebounded sharply. This recovery was aided by a 90-day pause on tariffs announced by the US, bilateral trade agreements with countries such as the UK, Japan, Indonesia, and Vietnam, and an ongoing truce between the US and China.Bank of Baroda highlighted that emerging markets performed particularly well amid uncertainty. “Vietnam, Hong Kong, China, Brazil and Japan have all registered double-digit increases so far,” the report noted.The analysis underscored a clear divergence in market performance, while most global indices fell during the initial tariff shock.“If we break down the period between Jan-Apr’25 and Apr-Sep’25, we see a considerable difference in the performance of equity markets. In the initial period (Jan-Apr), when countries and sectors received an initial jolt of tariffs, most markets fell. Only stock indices in Hong Kong, Brazil, India, and China were able to deliver positive returns, while all others fell,” the report added.