Recently, fears of global recession have devastated the US, Europe and many Asian markets for the second consecutive day. US President Donald Trump’s new tariff proposals and a possible trade war have increased concern among investors.
Reason for fall in markets – After bearing the first blow from Trump on Thursday, the plan to impose tariffs on the pharma sector on Friday and a sharp fall in crude oil prices further affected the market. This sell-off affected big stocks like Reliance Industries and ONGC. Sensex: Closed 930 points down at 75,365.Nifty: Fell 1.49% to 22,904.Broader market: Fell by more than 3%, causing the market capitalization of companies listed on the BSE to decline by more than Rs 10 lakh crore.
Impact of tariffs on the pharma sector – Trump has said that he is looking at pharmaceuticals as a separate category and tariffs on it will be announced soon. Following this news, the Nifty Pharma index fell more than 4% during the day.The fear of a global recession also affected metal stocks, which fell more than 6%. Trump’s tariffs have had the biggest impact on the US and European stock markets, which have fallen by up to 10% in the last two days.This situation has increased concerns among investors and there is uncertainty about the direction of the market in the coming times. All eyes are now on whether the situation will improve or the fear of recession will increase further.
