#"Economy"
#"Markets"
#"Trade"
📰 What’s Going On
India’s merchandise exports declined by 11.8% year-on-year in October 2025, as reported by credit-ratings agency CRISIL. The drop was broad-based: petroleum product exports fell by 10.4%, core sector exports eased to 10.2% from 6.1% in September. Exports to the US declined by 8.6% during the same period.
đź’ˇ Why This Matters for Markets
- A decline in exports may signal weaker external demand, which affects companies with large export-linked revenues and may weigh on market sentiment.
- The trade performance also hits the current account balance and may increase pressure on the Indian rupee, which in turn can affect inflation and bond yields.
- For sectors such as petroleum, gems & jewelry, and other export-oriented industries, investor caution might rise and valuations could adjust.
🧠How Investors Should Think
At Vanshi Wealth, we see this as a cautionary indicator, not a trigger for panic. Key actions:
âś… Review exposure to heavily export-driven companies and sectors.
âś… Consider diversification towards sectors less dependent on global demand (domestic consumption, infrastructure, financials).
✅ Monitor currency movements, inflation trends and central bank announcements more closely — these macro signals will influence returns.
âś… Use this weaker export data as an opportunity to differentiate companies with strong domestic business models or innovation-led growth may offer better risk/return.
đź“š Sources
- Business Standard – *“India’s merchandise exports drop 11.8% in Oct after US tariff hike: Crisil” * :
India’s merchandise exports declined by 11.8% year-on-year in October 2025, as reported by credit-ratings agency CRISIL. The drop was broad-based: petroleum product exports fell by 10.4%, core sector exports eased to 10.2% from 6.1% in September. Exports to the US declined by 8.6% during the same period.
đź’ˇ Why This Matters for Markets
- A decline in exports may signal weaker external demand, which affects companies with large export-linked revenues and may weigh on market sentiment.
- The trade performance also hits the current account balance and may increase pressure on the Indian rupee, which in turn can affect inflation and bond yields.
- For sectors such as petroleum, gems & jewelry, and other export-oriented industries, investor caution might rise and valuations could adjust.
🧠How Investors Should Think
At Vanshi Wealth, we see this as a cautionary indicator, not a trigger for panic. Key actions:
âś… Review exposure to heavily export-driven companies and sectors.
âś… Consider diversification towards sectors less dependent on global demand (domestic consumption, infrastructure, financials).
✅ Monitor currency movements, inflation trends and central bank announcements more closely — these macro signals will influence returns.
âś… Use this weaker export data as an opportunity to differentiate companies with strong domestic business models or innovation-led growth may offer better risk/return.
đź“š Sources
- Business Standard – *“India’s merchandise exports drop 11.8% in Oct after US tariff hike: Crisil” * :