On the last day of the business week, the stock market opened on the red mark on Friday. There has been a decline in the stock market for some time. On Friday, the Sensex -746.17 points opened at 73,866.26 at 9.30 am on Friday, while the Nifty -220.90 points fell at 22,324.15. It is important to note that US President Donald Trump has announced that tariffs on imports from Mexico and Canada will be applicable next week, which may increase pressure on markets.
3 major reasons for market fall
American tariff decision
US President Donald Trump announced a new tariff on imports from Mexico and Canada. This increased pressure in global markets and also affected the Indian market.
FII sales
Foreign institutional investors (FIIs) are constantly selling in Indian markets, due to which the decline is increasing rapidly.
India’s third quarter (Q3) GDP data
New figures related to the country’s economy are going to be released, which is affecting the market. This has created uncertainty among investors.
Loss of crores to investors
In February, it is the turn of investors from all over the world to cry. The market is not giving any relief to investors on the last day of the month. Today, as soon as the market opened, more than 4 lakh crore rupees of investors in the Indian stock market were destroyed. Not only this, no Nifty index was seen above the green mark in Friday’s trading session. Overall, the market capitalization of companies listed in BSE is Rs. It decreased by 4.46 lakh crores.
Trump’s tariff decision impact, fall in global markets
The Asia-Pacific stock markets declined on Friday. US President Donald Trump announced that tariffs on imports from Mexico and Canada would be implemented next week, increasing pressure on markets.
Japan’s Nikkei dropped 2.76%, while the topics weakened 1.96%. Australia’s ASX 200 0.67% and South Korea’s KOSPI fell 2%.
On Thursday, Trump confirmed that 25% tariffs on Canada and Mexico would be applicable from March 4. He said that these countries are not taking enough steps to stop drug trafficking. In addition, in addition to the 10% tariff already imposed on China, it will be imposed an additional 10% tariff from March 4.
American markets also saw a decline. The S&P 500 declined by 1.59%, while Nasdaq fell by 2.78%. This resulted in a decline of 8.5% in shares of Nvidia. Dow Jones declined by 0.45%.
The US economy increased at a rate of 2.3% in the fourth quarter of 2024, the slowest growth rate in the previous three quarters. According to the new unemployment data, the new unemployment claims increased by 22,000 to 242,000 in the third week of February, which is the highest in two months and is more than expected.
