North India Statesman
[ad_1]
The stock market saw a huge decline on the first day of the financial year. The Sensex has declined by more than 1300 points. The reason for this is Donald Trump’s mutual tariff. This had the worst impact on IT and banking sector. All the major sectors except auto were seen trading in red mark. Nifty IT, realty, financial and consumer durables fell by 1-3 percent. The special thing is that the market cap of BSE saw a decline of more than Rs 3.50 lakh crore.
Trump’s tariff increased concerns
April 2 is not important only for America or India. But it is also very important for the whole world. US President Donald Trump has named this day Mukti Day. Trump’s mutual tariffs will be effective worldwide from April 2. Trump recently also said that these tariffs will target all countries. This has increased the possibility of global trade war. Which can slow down global economic development.
Crude oil at 5 weeks highest level
Crude oil prices have reached a five -week high. Due to which concerns about inflation have increased. Brent crude was at $ 74.67 per barrel, while the US West Texas Intermediate (WTI) was trading at $ 71.37. High oil prices can put pressure on India’s fiscal deficit and corporate margin.
Profits after strong boom
The Nifty and Sensex increased by about 5.4 percent in the last eight sessions. Which was positive for this year. Investors are making profits after the recent rise, causing a decline in the market. The rapid growth in evaluation in short term has alerted some traders, resulting in increased selling in blue chip shares.
Will this bounce come again?
Will there be a boom or will the recession come? According to a main investment strategist, the answer will primarily depend on what the trump declares in relation to the tariff. If the tariffs are less than expected, the market may bounce under the leadership of pharmaceuticals and externally connected areas such as IT. On the other hand, if the tariffs remain rigid, the market may face another round of recession.
