China Linked Stocks: This year, the Indian stock market is behind most of the global market, but the shares of some companies may get a stir soon. Especially, which has a link to China. The relationship between the two largest population countries in the world now seems to be soft. Because both believe that US President Donald Trump is wrongly targeting him under his ‘America First’ trade policy.
Fund managers are now searching for companies in sectors such as pharma and electronics, whose supply lines or export channels are connected to China. These companies can become the main beneficiaries in the coming time.
These companies have started benefiting?
The impact of softening in India-China relations started to appear in the stocks of some companies already. The shares of the Interglobe Aviation LTD, which run India’s largest airline IndiGo, increased by more than 4% last week. The reason for this was reports that direct flights between India and China could resume next month.
Similarly, car parts manufacturer is a partner of Minda Corp in China. At the same time, electronic-commented manufacturer Kaynes Technology India Ltd imports the main parts from China. The shares of these two increased by more than 5%.
Ritesh Jain, founder of PineTree Macro, says, “The dispute between India-China is expected to be resolved soon. In such a situation, India can open its doors for China’s investment. Many companies in India will benefit from China’s scale and technology. Therefore, investors should be ready in time.
India-China is close to Trump’s policies
India and China have been affected by border disputes and geopolitical conflicts for several decades. In 2020, there was a Galwan clash, in which the soldiers of both countries lost their lives. There was an appeal to Indian consumers to boycott Chinese goods. Recently, Pakistan enlisted the help of Chinese weapons under military tension with India, which further increased the tension.
However, Trump’s trade policy is indirectly motivating the two countries to come together. Trump’s existing tariffs include 50% on India’s goods and up to at least 54% on Chinese goods. In addition to the commencement of direct flights, there is also talks to restart the border trade. Prime Minister Narendra Modi can visit China this month and will meet Prime Minister Xi Jinping there. This is expected to clear the further picture ahead.
India-China trade and investment
Even though a tough stance on the border has been adopted, China is still the second largest trading partner in India. India’s imports from China stood at $ 113.5 billion in 2025, which was $ 101.7 billion last year. At the same time, India’s exports to China stood at $ 14.2 billion.
Travel and tourism sector can benefit the most by improving India-China relations. The biggest hand in this will start again. In addition, fund managers are trying to recognize selected opportunities. Such as manufacturing sector associated with aviation, travel and supply-chain. He is also focused on companies with domestic import-sabstitations.
Pharma, Chemicals and Electronics
Pharma companies like Lupin Ltd will be able to import raw materials from China easily from India-China better trade relations. Rashtriya Chemicals & Fertilizers Ltd. China’s fertilizer can also benefit from relaxation on exports. Electronics manufacturer Dixon Technologies India Ltd is a partner with companies like China’s Xiaomi. That too can be in a better position in increasing production. JSW Group’s Joint Venture with Chaina’s Saic Motor Corp. He can also benefit.
Kok Hong Wong, head of Institutional Equities Sales Trading at Maybank Securities, Singapore, told Bloomberg, ‘Any financial support between India and China will create more opportunities. Investors should focus on companies that can benefit from cheap and efficient imports, such as Indian pharma and some electronics manufacturers.
Positive signal for investors
Increase in such stocks will be relief for Indian investors, who have seen weak performances in recent months. The Nifty 50 lead from the fear of Trump’s tariff was only up to 4.2% this year, while MSCI World Index showed a rise of 13%.
“Trump’s policies indirectly brought India and China closer to Australian -based Wilson Asset Management fund manager Matthew Haupt.
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