India’s Securities and Exchange Board (SEBI) believes that the stock market can handle the volatility caused by Trump’s trade war with minimal risk to the overall system.
SEBI chairman, Tuhin Kanta Pandey, assured investors that despite the volatility, abnormal pressure on margins and settlements is not observed.
The settlement system in India is considered unique, enabling trade clearing houses to settle trades on each other's stead without triggering a system-wide collapse.
Indian equities have performed better than other major markets since the announcement of aggressive levies on US imports, with India's Nifty 50 index down 2% compared to 9% for the MSCI Asia Pacific Index and 8% for the S&P 500.