Stock Market: 10% tariff on China! If Trump does this on India, what will happen to the stock market? – Stock Market May Big Fall if Donald Trump Announces Tariff Charge Check Details here tutd
Last year, when the Indian stock market was on the rise, perhaps no one would have thought that this rise would not last long. Before October last year, the Indian stock market had touched its all-time high level, but now the situation is such that Sensex has fallen 10,000 points from its all-time high level. Whereas Nifty50 has fallen by about 3000 points. The biggest reason for this has been huge selling by foreign investors (FIIs) every month.
After the September quarter results were not good, there has been a huge decline in the shares of companies since October. Now the Indian market is also scared of the fear of Trump’s policies. If Trump makes any kind of tariff or any other announcement on India, then the Indian stock market may see another big fall.
You can estimate this on the basis that the mere discussion of tariffs on China has increased the pressure in the Chinese stock market. The Chinese stock market index Shanghai closed down by about 1 percent. There was also a decline in the Hong Kong market.
Consideration of 10 percent tariff on China
On Tuesday, Trump said during a joint press conference at the White House with Oracle Chief Technology Officer (CTO) Larry Ellison, SoftBank Chief Executive Officer (CEO) Masayoshi Son and Open AI CEO Sam Altman that we are 10 percent less on China. Are considering imposing tariffs. Apart from this, these tariffs can also be imposed on Mexico and Canada.
What will happen in the Indian market?
Now this is a big crisis that if Trump makes a similar statement or announcement regarding India, then huge pressure can increase in the Indian stock market. Withdrawals from domestic institutional investors and foreign investors may increase. In January alone, Rs 57,000 crore has been withdrawn by foreign investors. The effect of which is that Sensex has fallen by 2,102 points in January and Nifty has fallen by 587.55 points.
On the other hand, another factor for withdrawal by foreign investors is that Trump will introduce some new policies for America, which will increase liquidity in the American market. This simply means that foreign investors can withdraw money from Indian and Asian markets and invest in the American market. In such a situation, this factor is also indicating another decline in the Indian market.
Market can handle budget and earnings
Experts say that the movement of the Indian market is more dependent on the budget and earnings. Many companies have shown good growth in the December quarter and earnings of many big companies are about to come. Apart from this, announcements like relief for the common man, exemption in income tax in the budget can change the trend of the stock market and there can be a good rise.
(Note- Before investing in any share, definitely take the help of a financial advisor.)
