Tomorrow i.e. Monday share There was a black day for market investors. Yesterday the Sensex declined by about 4000 points. At the same time, there was a big decline in the Nifty. Donald Trump’s tariff announcement caused turmoil in stock markets around the world on Monday. But it is a matter of relief for investors that the stock market managed to return on Tuesday.
The Sensex opened at 74,013.73 points with a big increase. The BSE’s intra-day highest level was 74,421.65 points (10.15 am), which was above 1,200 points. But in investors’ minds, the question is whether this bounce is just a bubble? Let us understand the real reason behind the boom in the stock market after Black Mande –
Trump’s new announcement brought relief
The US President has said that many countries are ready to discuss tariffs. Trade war can reduce stress. Avinash Gorakshakar of Profit Mart Securities says, “Yesterday President Donald Trump said that many countries including Vietnam are ready to discuss tariffs. This will reduce tension about trade war. Apart from this, the Japanese stock market and Hong Kong stock market have also affected the domestic markets.”
Global market boom
On Monday, there was chaos in markets around the world. But Tuesday is a matter of relief. Japan’s Nikkei index has been successful in increasing more than 5 percent. At the same time, Hong Kong Seng index rose by 1.50 percent in early trade. Other Asian markets also saw a boom. There is an atmosphere of enthusiasm in the market with the return of the bookies.
RBI also has high expectations.
Apart from this, experts hope that interest rates may be reduced in the ongoing bilateral meeting of the Reserve Bank. The central bank can cut interest rates by 0.25 percent. The RBI is trying to maintain cash flow in the market. Also, Trump’s tariff declaration can also help control increasing inflation.
Market improvement after heavy fall and selling
Avinash Gorakshakar says, “Investors sold fiercely on Monday. But now the market is showing a boom as the environment of boom has returned. Due to the short covering of investors, there is also a boom in the stock market.”
Good results are expected from the fourth quarter.
Sandeep Pandey of Basav Capital said, “Most Indian banks have reported good business updates in the fourth quarter. Many banks are trying to raise funds. This means that demand and supply for the industry will continue in the coming time.”
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