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India's financials withstand tariff turmoil, backed by strong updates and cheap valuations

ReutersApr 4, 2025 9:26 AM

India's financial services index .NIFTYFIN rose 0.2% on Friday, bucking the broader market decline

The Nifty 50 .NSEI has slipped 2% in two sessions since U.S. President Donald Trump announced reciprocal tariffs on India and others

Financials held steady, supported by strong pre-quarterly updates from HDFC Bank HDBK.NS, Bajaj Finance BJFN.NS, Bank of Baroda BOB.NS, and RBL Bank RATB.NS

"Strong business updates have supported financials even as broader sentiment remains weak," says Aishvarya Dadheech, CIO of Fident Asset Management

Analysts believe U.S.-linked growth fears may push the RBI to accelerate rate cuts, which could lower banks' funding costs despite margin pressure

Financial stocks are also benefiting from cheaper valuations, attracting investor interest, Dadheech adds

The financial services index is up 5.3% in 2025, outperforming the Nifty 50’s 3.3% drop

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