A day after US President Donald Trump announced a counter -tariff on imports from 60 countries, the Indian stock market declined on Friday 4 April. While the market was witnessed strength on Thursday, there was a negative attitude from the beginning of the market on Friday.
The Sensex broke over 800 points and the Nifty went below 50 22,950.
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The Sensex opened at 76,160.09 against the previous bandh of 76,295.36 and fell 850 points to 75,435.75.
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The Nifty 50 declined by more than 1 percent and reached 22,921.60.
Midcap and smallcap shares decline a big decline
Selling was seen in every sector in the market.
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The BSE midcap and smallcap index declined by 3-3 percent.
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At around 12 noon, the Sensex fell 750 points to 75,551 and the Nifty fell 290 points to 22,959.
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Due to this decline, investors suffered a loss of about 8 lakh crore rupees in a single day.
Trump’s warning over tariff
According to media reports, Trump has now planned to impose tariffs on Indian medicines.
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On 2 April, Trump kept India’s drugs out of the tariff.
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But now he has said that soon tariffs of never -seen levels will be applied in history on medicines.
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After this statement, the concern of investors has increased further.
Global signs weak, Asia and US markets declines
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Trump’s tariff policy has deepened the possibility of global economic recession.
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In the US, NASDAQ recorded 5.97 percent and S&P 500 declined by 5 percent.
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Japan’s Nikkei fell 3 percent in Asia and 2 percent of South Korea’s Kospi fell 2 percent.
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On Thursday, the Indian markets performed better than other countries, but on Friday, the selling pressure was clearly visible.
Increasing concern over the effect of tariff
Although experts believe that Trump’s tariff policy will not have much impact on India’s economy, but there is uncertainty about its indirect effects.
According to VK Vijaykumar, Chief Investment Strategist of Geojit Financial Services: “The market is going through a lot of uncertainty. Trump has started a new trade war. If other countries like China and European Unions also apply counter -tariffs, more selling can be seen in the market.”
Especially watching the quarterly results of companies
Investors are now monitoring the quarterly results of Indian companies amid uncertainty created by Trump’s policy.
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TCS will declare its results of its December quarter on 10 April.
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Investors will look at what the company’s management says about these conditions.
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The results of most companies in the last three quarters have been weaker than expected.
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If the results of the fourth quarter are not even better, it is possible to further decline in the market.
Inflation and Federal Reserve’s challenge
Experts believe that Trump’s tariff policy may increase inflation in the US, causing the Federal Reserve not be able to cut interest rates.
According to Morgan Stanley:
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He expected a cut of 25 basis points in June, but has now amended it.
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If the fed does not reduce the interest rate, its effect can also be seen on Indian markets, especially towards liquidity and investment.
Airlines and retail companies shares fell
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Best Bye Shares fell 15.2%
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United Airlines lost 12.3%
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Target’s shares fell 10.3%
Due to the possibility of impacting consumer spending due to tariffs, heavy selling was seen in these sectors.
Trump’s tariff policy stir in global markets, impact in many countries including India
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