Indian Stock Market: The Reserve Bank of India today decided to cut interest rates. This was a decision that leads to a strong boom in the stock market on ordinary days. Despite this, the domestic stock market became a victim of selling today. The apprehension of the Global Trade War and the fall in GDP growth once again forced investors to walk on a vigilant move.
Experts believe that most of the decisions of US President Donald Trump’s tariff system came into force from April 9, there is all -round pressure in the global market. Due to this, metal, IT and automobile sectors were the best selling in the Indian stock market.
According to Prashant Dhami, Vice President of Dhami Securities, Donald Trump has announced a global situation globally by announcing 104 percent tariff on China. Although China is still emphasizing on talking to America, it is believed that if the conversation is not successful, China can also put a counter tariff on America as before.
China has already spoken of struggling till the last power. In such a situation, investors are nervous about the possibility of a trade war between the world’s two largest economies. It is believed that if stress increases, the global supply chain may be interrupted. Along with this, the global economy can also be in the grip of recession.
Along with this, due to the Reserve Bank of India, the GDP growth estimates were reduced by 6.7 percent, there was an atmosphere of concern in the domestic stock market today. The RBI estimates that if the tariff of 26 percent of the US imposed on Indian goods became effective, it could decline from 0.20 percent to 0.40 percent in the development of the Indian economy. These estimates of the RBI also affected the stock market business today.
On this, Shrikant Chauhan, an equity research head of Kotak Securities, says that a major reason for the decline in the stock market is also a bounce in the American bond yield. The yield on American Treasury Bonds with a period of 10 years has increased by 0.20 percent to percentage, while the yield on a 30 -year -long bond has increased by 0.21 percent to 4.97 percent level.
The increase in yield also has a direct impact on the investment in equity, which increases the selling pressure. Srikanth Chauhan believes that the Nifty has faced tremendous registration at the level of 22,660 points. If this level is not exceeded, the Nifty can create a position around 22,300 points. On the other hand, if the Nifty at the lower level breaks the level of 22,160 points, the market instability will increase further.
