Recently, former US President Donald Trump has announced to impose 104% import duty on Chinese goods, which has caused a stir in the global stock markets. This move has affected the stock markets from America to Japan, and its effect can also be seen on India’s stock market, Sensex and Nifty.
Tariff war between America and China – After this announcement by Trump, the tariff war between America and China has deepened even more. This situation has shaken the US stock market. Japan’s Nikkei has fallen 1.51% and Hong Kong futures 3.1%. The benchmark indices of the Indian stock market, Sensex and Nifty-50, are likely to open with a decline on Wednesday. The trends of GIFT Nifty are also giving negative signals, which was trading at the level of 22,442.50.
Monetary policy of Reserve Bank of India – Meanwhile, the Reserve Bank of India will announce its monetary policy today. The Monetary Policy Committee (MPC) headed by Governor Sanjay Malhotra may cut the repo rate amid softening inflation and slowing economic growth. This may lead to further movement in the market.
Fall in US markets – On Tuesday, US markets rose, where the Dow Jones jumped 1400 points. But as soon as the new tariff on China was announced, the market lost its gains and closed 320 points lower at 37,645. The S&P 500 closed below 5,000 points for the first time in a year at 4,982.77. In the last four days, it has suffered a loss of $5.83 trillion (about Rs 485 lakh crore), the biggest decline since 1950.Stocks of tech companies have been affected the most. Tesla shares fell -4.9%, Nvidia -1.37%, AMD -6.49%, and Intel -7.36%. Apple shares also fell 4.98% due to fears of impact on its production and sales in China.
