The DAX index has stalled this month as investors watch the rising tensions between Europe and the United States. The index, which tracks the biggest companies in Germany, peaked at €23,470 this month and then retreated to a low of €22,500 on Thursday. 

German automakers under pressure

The DAX index retreated on Thursday after Donald Trump confirmed that the US would implement new tariffs on European cars from next week. Tariffs will move from about 2% to 25%, a big monumental shift that will be felt in Germany. 

A 25% tariff means that a car that now costs $50,000 will start costing at least $75,500 more in the United States. That’s because these tariffs will ultimately be pushed to consumers over time.

Customers, on the other hand, will now opt to buy American-made cars that will have fewer tariffs. This means that there is a risk that German vehicle imports to the United States will slip as companies rush to expand their plants in the US. 

The US is a pivotal market for German automakers like BMW, Volkswagen, Mercedes Benz, and Porsche. In theory, a company like BMW will be impacted less because its biggest factory globally is in South Carolina. 

Porsche will be the most impacted DAX index constituent because the US has become its biggest market and it makes all its vehicles in Germany. While its customers are affluent, there is a likelihood that many of them will be cautious. This explains why the Porsche share price has crashed by 16% this year, making it the second-worst performer in the index after Vonovia. 

Other German auto stocks are holding steady this year, partially as investors believe that Donald Trump just wants a deal. BMW stock has dropped by 1% this year, while Daimler Truck, Mercedes-Benz Group, and Volkswagen have risen modestly. 

These stocks will likely feel the heat when the trade war between the US and German accelerates. 

German government spending 

The main reason why the DAX index has held steady as challenges rise is that government spending is expected to rise this year. 

This month, the parliament voted to approve a €500 billion infrastructure fund and easing borrowing rules. Most of these funds will go towards defense spending now that there are concerns about Donald Trump and JD Vance’s attitude towards Europe.

This explains why companies exposed to infrastructure are leading the DAX index this year. Rheinmetall stock price has soared by 120% this year, while Heidelberg Materials is up by 40%. 

The other top gainers in the DAX index are Commerzbank, Allianz, Deutsche Bank, Bayer, and Siemens. Commerzbank is up because of the ongoing European bank stocks rally and hopes that Unicredit will make a move either this year or next.

DAX index analysis 

DAX chart by TradingView

The daily chart shows that the DAX index has been in a tight range in the past few months. It peaked at €23,470, a record high. 

The index has remained above the 50-day Exponential Moving Average (EMA), a sign that bulls are in control. It has also formed a bullish flag chart pattern. 

Therefore, the index will likely remain under pressure for a while as concerns about tariffs continue. More gains will be confirmed if the index rises above the all-time high of €23,470. A drop below the support at €22,400 will invalidate the bullish view.

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Airbus stock price has done better than Boeing in the past few years as demand for its planes has surged. Its stock has soared by 200% in the last five years, while Boeing has risen by just 10%. This article explores why Airbus will keep doing better than Boeing this year.

Trump trade war to hurt Airbus

Donald Trump has launched the biggest trade war in decades by targeting its top trading partners like those in Europe, Asia, and South America.

He has done that by implementing large tariffs on imports, especially steel and aluminum. Most importantly, he has said that April 2 will be the US Liberation Day, when he will impose reciprocal tariffs.

This trade war will have Boeing as a bigger casualty than Airbus. That’s because Airbus is a European company that will become a better choice for international companies as the US reputation worsens. 

As such, it is easier to see how a country like China orders its airlines to switch to Airbus planes. The country may also announce huge tariffs on Boing planes that companies simply switch to Airbus voluntarily. 

Besides, Airbus planes are generally better and safer than Boeing, a company that has moved from one crisis to the other. 

Further, unlike Boeing, Airbus is a more international company, with a large factory in the United States. As such, while it will be hit by some import tariffs, it means that it will continue serving American customers without the import tariffs. 

Airbus is growing its market share

The Airbus stock price will keep beating Boeing for other reasons. A low-hanging fruit is the fact that European countries are now getting serious about their security. Germany recently voted for a €500 billion bill that will see it improve its equipment.

While Airbus is known for its civil aircraft, it is also a major player in the defense industry, where it makes engines for military planes. Its defense business brought in over €12 billion in 2024. 

European governments have insisted that the upcoming defense spending should be concentrated to European companies like Airbus.

Further data showed that Airbus business was doing well. Its revenue rose to €69.2 billion in FY’24, up from €65.4 billion a year earlier. It delivered 766 planes, while its backlog continued growing. It now has an order book of over €629 billion.

Airbus, like other industrial companies, has gone through major supply chain challenges in the past few years. These challenges will likely continue for a while because of these tariffs. 

However, these supply chain issues will also affect Boeing more because Airbus’ largest operations are in Europe.

Boeing vs Airbus: which is a better stock to buy?

Investors have a choice to make on whether to invest in Boeing or Airbus. Boeing proponents cite its substantial market share in the civil aviation and defense sectors.

Also, they note that its stock crash makes it a bargain with a longer runway for growth in the coming years. This growth will be supercharged if the company’s planes stay out of trouble in the foreseeable future. 

Additionally, they point to the fact that Boeing has a new CEO who may shepherd it well in the longer term. 

Boeing’s bullish case is valid to some point, but Donald Trump’s tariffs will worsen the situation. For example, its margins will be affected by the tariffs on steel and aluminium and other parts.

The other argument is that Airbus is a better company to invest in because of its quality planes and the fact that it will continue growing market share over time. Therefore, the stock will likely continue doing well and is a better buy than Boeing.

Read more: Boeing stock price forecast 2025: BA is ready to fly

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The European Commission, the executive arm of the European Union, is actively exploring potential revisions to the existing EU energy laws. 

This initiative is part of a broader package of proposals aimed at reducing the regulatory burden currently faced by struggling industries within the European Union, Reuters reported on Friday. 

These potential changes are being considered in response to concerns that the current regulatory framework may be hindering the competitiveness and growth of certain industries, particularly those grappling with economic challenges. 

The Commission’s objective is to strike a balance between ensuring a well-functioning energy market and promoting a favorable business environment that supports economic recovery and sustainable development.

The European Commission is initiating efforts to streamline regulations and reduce bureaucratic hurdles for businesses. 

Concerns driving regulatory changes

This comes in response to concerns that excessive red tape puts European companies at a competitive disadvantage compared to their counterparts in China and the US, where the Trump administration has been actively pursuing deregulation.

Following the release of initial proposals to streamline sustainability reporting requirements last month, the Commission is now evaluating strategies to simplify EU energy policies, according to five sources familiar with the matter quoted in the story.

Although still in the early stages, the discussions could be included in a comprehensive package aimed at reducing the regulatory burden for small and mid-cap companies due in April.  

The report indicated that this package is now expected to be delayed until May.

Three anonymous sources have revealed that the European Union’s energy efficiency directive is currently under scrutiny as part of a broader policy assessment. 

This directive, a cornerstone of the EU’s energy policy, sets ambitious targets for member states to improve their energy efficiency. 

The ongoing assessment suggests that the directive’s effectiveness and potential for further improvement are being closely examined.

Consumption targets

The directive mandates that companies audit their energy use and that larger firms implement energy management plans to meet binding energy consumption targets.

The renewable energy law, which sets binding targets for countries to expand their use of renewable energy, is one of the bloc’s main climate change policies. 

According to the report, the Commission is looking at potentially simplifying this law and is also looking at other climate change policies.

The impetus to reduce bureaucratic obstacles has garnered substantial support from the business sector, which contends that excessive regulations not only impede competitiveness but also strain valuable resources. 

This unnecessary burden forces companies to divert funds that could otherwise be allocated towards fostering innovation and technological advancements. 

By streamlining regulatory processes and eliminating redundant or outdated rules, governments can create a more conducive environment for businesses to thrive and invest in research and development, ultimately driving economic growth and prosperity.

Investors, left-leaning lawmakers, and campaigners have criticised the initial omnibus proposals. 

They argue that these proposals will weaken corporate accountability and create an unstable investment environment by reversing recently established laws.

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The Nifty 50 index has bounced back this week even as the Indian rupee surged and the risks to the economy rose. The index soared to a high of ₹23,778, its highest swing since January and higher than the year-to-date low of ₹21,988. This report explores why Indian stocks are bouncing back.

Indian companies could be hurt by US tariffs and slowdown

There are signs that Indian companies will be affected by the happenings in the United States. For example, IT consulting firms like Infosys, Wipro, and Tata Consultancy Services have retreated as they reel from the ongoing government spending cuts in the United States.

Elon Musk is aiming to cut government spending by $1 trillion in the next few months. One of the low-hanging fruits has been to cancel contracts with companies that provide IT consultancy to the government.

The other major catalyst that may hurt Nifty 50 companies is the upcoming reciprocal tariffs by Donald Trump. While India has pledged to slash some of its tariffs, there is a risk that Trump will not buy it. That’s because the US maintains a $50 billion trade deficit with India, which he sees as being problematic. 

At the same time, Indian exporters will be hurt by the soaring Indian rupee, which has jumped by over 5% in the past few weeks. An expensive local currency makes goods more expensive to importers. 

On the positive side, there are hopes that the Reserve Bank of India (RBI) will implement more interest rate cuts later this year. Stocks benefit from low interest rates by making returns in the fixed incom lower. 

Top Nifty 50 index stocks in 2025

Many companies in the Nifty 50 index are doing well this year. The best performers are Bajaj Finance and Bajaj Finserv, whose shares have surged by 38% and 28%, respectively. These companies have done well as their revenue and demand surges.

Kotak Mahindra’s stock price has soared by 21% this year as its private banking division, which caters to the wealthy, booms. Data shows that it added 2,280 new families in the last 12 months, much higher than the 711 that it added a year earlier. This growth means that it now provides wealth solutions to about 60% of all Indian wealthiest families. 

Kotak’s private bank’s clients must have at least $1 million in investable assets, with most of its customers having a net worth of over $30 million. However, the wealth management industry is now contending with competition from companies like UBS, HSBC, Julius Baer, and Standard Chartered.

The other top companies in the Nifty 50 index are firms like JSW Steel,  Shriram Finance, Hindalco Industries, Tata Steel, Eicher Motors, and Tata Consumer. 

On the other hand, IndusInd Bank stock has crashed by over 32% this year, making it the top laggard. The company has dropped because of the substantial bad loans tied to its cooperatives business. Other top laggards are firms like Trent, Dr. Reddy’s, HCL Technologies, Infosys, and Wipro.

Nifty 50 index analysis

The recent Nifty index rebound is part of our recent forecast. In that report, we noted that the index was forming a bullish flag pattern, which is characterized by a tall vertical line and a flag-like pattern. The flag section also has a close resemblance to a falling wedge, a popular bullish pattern. 

Therefore, the Nifty 50 index will likely have a strong bullish breakout, with the next key level to watch being at ₹26,300, up by almost 12% from the current level. A drop below the support at ₹22,000 will invalidate the bullish outlook. 

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IndusInd Bank share price has imploded this year, making it the worst-performing company in the Nifty 50 index. It has plunged in the last five consecutive weeks, reaching a low of ₹645, its lowest level since November 2020, and 62% below its highest point in 2024. This article explores why the IndusInd stock has imploded and what to expect later this year.

Why the IndusInd share price has crashed

IndusInd, a top Indian private bank, has come under intense pressure in the past 12 months as it continued to underperform its peers like Bajaj and Kotak. 

The crisis has been going on for a while, but the situation worsened in October last year when it published weak financial results. Its second quarter’s net interest income dropped by 1% to ₹5,347 crs, while its net profit plunged by nearly 40% to ₹1,331 crs.

This loss trajectory continued in its Q3’25 financial results. Its net interest income dropped by 1% to ₹5,228 crs as its net interest margin narrowed to 3.93%. IndusInd’s net profit fell by another 39% in the last quarter to ₹1,402 crs.

The ongoing deterioration in its business is mostly because of its microfinance division. This is a fast-growing and high-risk business that the company has been banking on in the past few years. The risk is that it provides unsecured loans, where the default rate has surged lately.

At the same time, IndusInd share price has plunged because of the ongoing weak growth in its high-yield loans. 

The crash intensified in March after it emerged that there was a discrepancy in its derivatives portfolio. In this, the company identified mismatches in account balances related to past derivatives transactions. The RBI had previously banned internal hedging trades and ordered an internal review. 

IndusInd Bank has also gone through some leadership issues in the past few years. The RBI opted to extend the CEO’s tenure by just one year instead of the three that the management had requested. That is a sign that it may have some leadership issues. 

Will the IndusInd stock recover?

The ongoing IndusInd stock price crash has become an outlier in India, where other companies are doing well. For example, Bajaj Finance is the best-performing company in the Nifty 50 Index this year as it jumped by 30%. 

Other Indian banks like Kotak Mahindra, ICICI, Axis Bank, HDFC, and State Bank of India have eked small gains this year. 

IndusInd’s risk is that the company could start shedding customers as confidence wanes. At the same time it is not easy to exit the crisis in the microfinance division, meaning that the losses crisis may continue.

The management has insisted that the bank has adequate resources, with its CET-1 ratio of 15%, higher than other global companies. However, the ongoing lack of confidence may push the RBI to request for more reserves.

IndusInd Bank share price analysis

The weekly chart shows that the IndusInd Bank stock price has been in a strong sell-off since mid-2024, when it peaked at ₹1,673. It recently crashed below the key support at ₹743.50, its lowest point in June 2022. 

The stock has also formed a death cross pattern as the 50-week and 200-week Exponential Moving Averages (EMA) crossed each other. All oscillators like the Relative Strength Index (RSI) and the MACD have all pointed downwards.

Therefore, the stock will likely continue falling as sellers target the key support at ₹550. The downtrend may continue for a while. However, a move above the key resistance point at ₹745 will invalidate the bearish outlook.

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