India’s stock market faced a significant downturn this week, as the Sensex and Nifty 50 indices plummeted due to escalating global trade tensions and renewed anxieties surrounding a potential recession in the United States. This sharp decline rattled investor confidence, causing the BSE Sensex to drop nearly 3,939 points, reaching a low of 71,425.01. Meanwhile, the NSE Nifty 50 slid below 21,800, marking a staggering 1,160-point fall, which is the steepest decline since June 2024.

Market Impact and Investor Wealth

The impact on broader market indices was even more pronounced, with the Nifty MidCap and SmallCap indices dropping 7.5% and 9.9%, respectively. This sell-off resulted in a staggering loss of nearly ₹19 trillion in investor wealth, with the total market capitalization of BSE-listed companies plunging from over ₹403 trillion to approximately ₹384 trillion in just a single trading session.

The market chaos was triggered by China’s decision to impose a 34% tariff on all imports from the U.S., reigniting fears of an extended trade war and leading to a global sell-off.

Stocks to Watch Amid Market Volatility

Despite the turmoil, several domestic stocks remain resilient and may present investment opportunities. Here are five domestic-focused companies that could thrive amidst the chaos:

1. Control Print

Control Print stands out in India’s coding and marking sector, offering a range of solutions, including Continuous Inkjet and Thermal Inkjet Printers. Catering to industries like food and beverages, healthcare, and textiles, this company’s products are integral to the Indian industrial landscape.

• Recent Developments: In 2022, Control Print acquired Markprint BV for €1.5 million, enhancing its technological capabilities. The company has also diversified into manufacturing surgical and N95 masks.
• Financial Performance: For the December 2024 quarter, Control Print reported revenues of ₹1 billion, reflecting a 16.6% year-on-year growth, although net profits dipped by 38.5% due to rising costs.

2. Mold-Tek Packaging

Mold-Tek Packaging excels in the production of injection-moulded containers for various sectors, including lubricants, paints, and food products.

• Clientele: Major brands like Asian Paints, Castrol, and Dabur rely on Mold-Tek, underscoring its critical role in India’s supply chain.
• Financial Snapshot: The company achieved a 15.25% year-on-year sales increase, totaling ₹1.9 billion for the December 2024 quarter, while net profit fell by 3.94% due to fluctuating costs.

3. Action Construction Equipment

Action Construction Equipment Ltd (ACE) is a dominant force in the construction and material handling equipment market in India.

• Market Leadership: ACE holds over 63% of the mobile crane market and 19% of the forklift sector, making it a leading player domestically.
• Recent Results: In the December 2024 quarter, ACE reported a 16% rise in sales to ₹8.8 billion, with a net profit surge of 26.6%, reaching ₹1.1 billion.

4. Coal India

Coal India Ltd (CIL) is pivotal in the nation’s energy landscape, producing 82% of the country’s coal and supplying over 80% to the power sector.

• Operations: CIL manages 350 mines across 8 states, primarily focusing on open-cast mining, which enhances productivity.
• Financial Overview: For the December 2024 quarter, CIL saw a slight 1% decline in revenue to ₹357.8 billion, with net profits dropping 17% to ₹85.1 billion.

5. IRCTC

Indian Railway Catering and Tourism Corporation (IRCTC) monopolizes online ticketing and catering services for Indian Railways.

• Market Share: With a 100% market share in online ticketing, IRCTC has revolutionized travel convenience in India.
• Growth Metrics: For the quarter ending December 2024, IRCTC’s revenue climbed 10% to ₹12.3 billion, while net profit rose by 14% to ₹3.4 billion.

Conclusion: Navigating Market Challenges

Investing in domestic-focused companies can be a strategic move, particularly during periods of global instability driven by trade tensions and economic uncertainty. These firms primarily serve the Indian market and are less susceptible to external shocks such as tariffs and geopolitical issues.

As India continues to grow through rising consumption and infrastructure development, investors should conduct thorough evaluations of these companies’ fundamentals and governance before making decisions.

This approach not only allows for potential growth but also provides a buffer against market volatility.

Disclaimer: The information provided in this article is for educational purposes only and should not be construed as investment advice. Always consult with a qualified financial advisor before making investment decisions.