There is a huge upheaval in the US stock market. On Thursday night, the US market declined by nearly 6 percent, while the Dow Jones index fell by 1,600 points, or about 4 percent. S&P 500 also declined by about 5 percent. Such a major decline in one day was earlier on 16 March 2020. However, the Indian stock market has not yet seen a decline.
Indian stock market declines even today
The Indian market has seen a decline of 965 points at 2.36 pm in the US in the US. The Sensex has reached 75,330 points while the Nifty has also declined by 369 points. The Nifty has fallen to 22,880 points. On the other hand, RIL shares have fallen by more than 4 percent. The main reason for the decline in Reliance Industries shares is considered a global effect. Where the risk of recession has increased.
Stock market condition on Thursday
Indian stock markets saw heavy selling on Thursday i.e. April 4. The Sensex has fallen to around 75,300 in a day, or more than 1 percent. The Nifty 50 also fell 335 points or more than 1.45% to 22,910. Four main reasons are being considered for this decline.
Are these reasons for fear of recession?
Fear of global trade war
Following Trump’s new tariff, China and Canada have also threatened to retaliate. Investors are worried about this. The US has imposed 26% import duty on Indian goods and 10% on other countries. In response, Canada has imposed 25% tariffs on American vehicles. This has increased the threat of global trade war.
Global market declines
The US declined by 5% in the S&P 500 index and 5.5% in Nasdaq, the biggest fall after 2020. Asian markets have also declined. Nikkei of Japan fell 3% and South Korea’s Kospi fell 2%.
Regional pressure
Pharma stock, IT stock and auto stocks are under heavy pressure. Reliance’s shares also have heavy selling. The Nifty IT index declined by 2%, with the biggest decline in coforge and personal systems. Selling was seen in metal shares.
Possibility to increase inflation
The biggest threat of recession in the US is inflation. Many experts estimate that inflation in the US will increase rapidly, as now goods will be available from other countries at high prices. This will increase inflation. The dollar index is also seeing a decline, which is not a good sign for the American economy.
Is the risk of recession increasing?
After the tariff by Trump has been imposed, there has been an increase in the possibility of inflation in the global market, which seems to increase the risk of recession. Senior economist Brett Ryan, a Deutche Bank, told the news agency that Trump’s tariff may reduce the US growth rate by 1–1.5 percent this year, which would increase the risk of recession significantly. However, there is no such crisis in India at present. There are good signs for India’s economy.
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