The NSE Nifty 50 Index climbed as much as 2.4% in Mumbai trading on Tuesday, hovering around their closing level on April 2. The market was shut on Monday for a local holiday.

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Investors are touting Indian markets as a relative safe haven amid the volatility sparked by US President Donald Trump’s reciprocal tariffs. The nation’s big domestic economy is seen able to withstand a potential global recession better than many peers, who face higher tariffs.

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“We remain overweight India in our portfolios,” said Gary Dugan, chief executive officer of The Global CIO Office. Supported by good domestic growth and aided by a likely diversification of supply chains away from China, Indian equities are seen as a safer bet over the medium term, he said.

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An intensifying Sino-American trade war is shining a spotlight on India as an alternative manufacturing hub to China. In stark contrast to Beijing’s retaliatory moves against US levies, New Delhi has struck a conciliatory tone and sought to reach a provisional trade deal with the Trump administration.