Nirmala Sitharaman's advice to investors amid Trump tariff-triggered market volatility

Amid volatility in the Indian stock market triggered by US President Donald Trump-imposed trade tariffs, finance minister Nirmala Sitharaman urged all stakeholders of the financial markets, including investors, to have faith in the long-term promise of disciplined wealth creation.

Speaking at the 150th anniversary of the Bombay Stock Exchange (BSE), Sitharaman underscored the central role of investors in shaping the future of India’s financial markets but asked them to remain informed.

To the market intermediaries and exchanges, the finance minister called for innovation with purpose, but investor interest should always be at the centre.

"To our corporates -- let transparency, sound governance, and commitment to shareholder value be your guiding principles. To our regulators -- remain proactive, agile, and responsive in a world defined by rapid change," Sitharaman was quoted as saying by ANI.

Finance minister Sitharaman calls for investor education

“Investor education is more crucial than ever,” she said, pointing to the surge in retail participation and the rising number of young and first-time traders.

Sitharaman also urged stakeholders to expand investor awareness programmes in regional languages, targeting students, women, senior citizens, and rural investors to build a more inclusive financial ecosystem.

She suggested that Investor Awareness Programs (IAPs) in regional languages should be conducted across urban and rural areas, with a focus on students, senior citizens, women, rural investors, and first-time traders.

India is now the fifth-largest in the world, with market capitalisation recently crossing $5 trillion.

Innovation must serve investors: Sitharaman

Addressing the BSE event, she opined that to truly democratise investment, stock exchanges must continually innovate and design products that are accessible, understandable, and aligned with the risk appetite and savings behaviour of our citizens.

She told the exchange officials that the goal must be to make capital markets inclusive and rewarding for all strata of society.

Speaking about the role of stock exchanges, she noted that they serve as more than just trading platforms, as they are a crucial part of the capital markets.

"As first-line regulators, the stock exchanges carry a profound responsibility. At the same time, they need to balance the cost of compliance with such regulations and enable innovations and informed risk-taking," she supplemented.

Trump tariffs and Indian stock markets

As global trade tensions due to Donald Trump-imposed reciprocal tariffs rattled the stock market, investor wealth took a massive hit this April, with over ₹11.30 lakh crore erased from the Indian share market.

The BSE Sensex plunged nearly 2% since the beginning of the month reflecting widespread volatility triggered by fresh trade tariff war between the United States and China, PTI reported.

From April 2 to April 14, the BSE benchmark gauge had slumped 1,460.18 points or 1.90 per cent.