Positioning Portfolios Amid Global and Domestic Market Shifts

Even as global trade slows, Indian firms have adapted. Nearly 87% of them are focusing more on domestic markets, building resilience against external shocks. Steady inflows from Indian investors have also helped counter any foreign outflows from equities.

- By Manoj Trivedi

The year 2025 is turning out to be a test of balance for investors. Global markets are slowing, central banks are cautious, and geopolitical moves are rewiring trade flows. Amid this, India's steady growth and domestic liquidity offer a measure of stability. The question begets, how do you position your portfolio to ride these shifts without losing sight of growth?

Slower Global Growth

The IMF expects global growth to ease slightly from 3.3% in 2024 to about 3.2% in 2025, and further to 3.1% in 2026. Advanced economies will likely stay around 1.5%, while emerging markets hold near 4%, but with higher swings in performance. Rising geopolitical tensions, tariff barriers, and policy changes by central banks are shaping a more defensive mood. Inflation is uneven globally speaking, higher in the US, softer elsewhere and in India. Central banks are treading carefully. The Federal Reserve may hold rates firm till early 2026, while others could begin easing gradually.