Riding the Bullish Wave: 5 Tariff-Neutral Indian Stocks Poised for Growth in 2025
Discover five tariff-neutral Indian stocks—Dr. Reddy’s, Hindustan Unilever, DMart, Dabur, and Mahindra & Mahindra are showing strong bullish trends in 2025. Explore both their fundamentals and technical outlooks.
Introduction
The Indian stock market has been weathering volatile global conditions in 2025, characterized by increasing geopolitical conflicts, changing trade regulations, and new tariffs enacted by Western nations. Nonetheless, in the face of these international challenges, some Indian stocks continue to show strength—they are mostly shielded from tariff implications, bolstered by strong domestic demand, and backed by advantageous technical configurations.
This blog explores five tariff-neutral Indian stocks that are currently showing bullish trends: Dr. Reddy’s Laboratories, Hindustan Unilever (HUL), Avenue Supermarts (DMart), Dabur India, and Mahindra & Mahindra (M&M). We’ll break down their fundamental strengths and technical indicators, while also discussing why these companies are relatively shielded from tariff risks.
1. Dr. Reddy’s Laboratories (DRREDDY)
Fundamentals
Dr. Reddy’s Laboratories, one of India’s leading pharmaceutical giants, continues to deliver strong financial performance. In Q4 FY25, the company posted a 22% year-on-year increase in net profit and a 20% revenue growth. This growth was primarily driven by:
Expansion in U.S. generics.
Cost optimization strategies.
Strong growth in emerging markets.
Pharmaceuticals, particularly generics, are often exempt from tariff wars, making Dr. Reddy’s relatively tariff-neutral. In fact, during times of global trade restrictions, pharma often benefits due to essential demand.
Technical Outlook
On the charts, Dr. Reddy’s exhibits strong bullish momentum:
Moving Averages: The stock price is considerably higher than its 50-day and 200-day exponential moving averages (EMAs).
MACD: A bullish crossover indicates sustained buying momentum.
Relative Strength Index (RSI): Trending above 60, suggesting positive sentiment without being overbought.
Verdict: With robust fundamentals and strong technical momentum, Dr. Reddy’s is a defensive yet high-potential pick.
2. Hindustan Unilever (HUL)
Fundamentals
Hindustan Unilever is India’s largest FMCG company, operating in segments like home care, personal care, and food & beverages. In Q1 FY26, HUL reported a seven-quarter high revenue growth, supported by:
Rural demand recovery.
Premiumization of products.
Strong pricing power amidst inflationary pressures.
Since FMCG demand is largely domestic, HUL is highly immune to global tariff wars. Brokerages have upgraded target prices, reflecting strong investor confidence.
Technical Outlook
Technically, HUL is showing a confirmed bullish breakout:
Ichimoku Cloud: The stock has broken above the cloud, signaling trend reversal.
Volume Indicators: Breakout accompanied by rising volumes confirms buying interest.
Target Levels: Analysts expect upside towards ₹2,650-2,700, with strong support around ₹2,350.
Verdict: A classic defensive stock with consistent returns, HUL is a safe harbor amidst tariff disruptions.
3. Avenue Supermarts (DMart)
Fundamentals
Avenue Supermarts, the parent company of DMart, is a retail powerhouse with a growing footprint across India. In July 2025, the stock surged 6% after the company announced major expansion plans, further strengthening its position in the organized retail segment.
Key strengths include:
Focus on value-driven retailing.
Robust same-store sales growth.
Growing penetration in Tier II and Tier III cities.
Since DMart’s business is entirely domestic retail, it is immune to tariff changes.
Technical Outlook
DMart’s technical indicators highlight bullishness:
Golden Cross: 50-day EMA crossing above 200-day EMA.
Breakout: Stock has broken past resistance at ₹2,100.
RSI: Hovering near 65, showing strong momentum.
Verdict: A strong consumption-driven stock, DMart offers both growth and stability, with minimal global exposure.
4. Dabur India
Fundamentals
Dabur India, one of the oldest names in India’s FMCG sector, continues to ride on its strong brand equity in healthcare, ayurveda, and packaged foods. Despite inflationary pressures, Dabur has maintained healthy margins through:
Product diversification.
Increased rural penetration.
Strategic cost controls.
Being a consumer staple giant, Dabur’s business model is highly domestic-focused and thus minimally affected by tariff risks.
Technical Outlook
The stock has shown signs of a bullish reversal:
Support Zone: Holding strong at ₹500.
Bullish Divergence: RSI divergence pointing towards upside potential.
Target Levels: Analysts project near-term targets around ₹580.
Verdict: Dabur’s fundamentals combined with its technical strength make it a steady pick for long-term investors.
5. Mahindra & Mahindra (M&M)
Fundamentals
Mahindra & Mahindra is one of India’s leading automobile manufacturers, particularly strong in SUVs and tractors. Despite global auto headwinds, M&M has remained resilient due to:
Strong domestic demand for utility vehicles.
Leadership in the farm equipment sector.
Diversification into EVs and shared mobility.
Though M&M has some export exposure, the bulk of its sales come from domestic markets, making it relatively tariff-shielded.
Technical Outlook
M&M has been showing bullish momentum since June 2025:
Breakout Pattern: Formed a bullish candlestick breakout.
MACD: Positive crossover.
RSI: Hovering around 70, suggesting strong momentum with caution on overbought levels.
Verdict: With strong fundamentals in the domestic auto space and bullish technical setups, M&M remains a growth story.
Comparative Snapshot
| Stock | Tariff Exposure | Fundamental Strength | Technical Signal |
|---|---|---|---|
| Dr. Reddy’s Laboratories | Low (pharma exempt) | Strong profit growth, U.S. demand | EMA & MACD bullish |
| Hindustan Unilever (HUL) | Low (domestic FMCG) | Consistent revenue growth | Ichimoku breakout |
| Avenue Supermarts (DMart) | None (retail-focused) | Expansion & domestic demand | Golden cross, breakout |
| Dabur India | Low (FMCG staples) | Rural & healthcare strength | RSI bullish divergence |
| Mahindra & Mahindra (M&M) | Moderate (autos) | SUV & tractor leadership | Breakout, bullish RSI |
Why Tariff-Neutral Stocks Matter in 2025
Global tariff wars have created uncertainty for export-heavy sectors like IT, textiles, and metals. For Indian investors, focusing on tariff-neutral stocks offers a safer path forward. These companies derive most of their revenues from domestic demand, have strong brand equity, and enjoy favorable long-term growth drivers like urbanization, rural consumption, and healthcare demand.
In 2025, with India’s economy projected to grow at over 6.5%, these companies are well-positioned to deliver both stability and returns.
Conclusion
Investors seeking bullish yet tariff-neutral opportunities in 2025 should look closely at Dr. Reddy’s, HUL, DMart, Dabur, and M&M. Each of these stocks is showing strong momentum both fundamentally and technically, while remaining shielded from global tariff shocks.
From defensive FMCG leaders like HUL and Dabur, to growth-driven names like DMart, and sector giants like Dr. Reddy’s and M&M, this portfolio represents a balanced mix of stability, growth, and resilience.
For investors aiming to ride the bullish wave while minimizing global trade risks, these five stocks offer a compelling opportunity.
Author’s Note:
This blog is for informational purposes only and not financial advice. Please do your own research or consult a licensed advisor before investing. Markets involve risk, and past results don’t guarantee future returns.
Sources
Times of India, Markets Coverage
Economic Times, Markets & Corporate Results
Reuters, India Business Section
Moneycontrol, Technical Analysis Reports
Investing.com, Technical Analysis Insights
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