Donald Trump on Wednesday increased the 25% tariff to India to 50%. It can see a widespread impact on the stock market today. The Indian stock market is already sluggish due to the uproar over Trump’s tariff. In such a situation, sudden double tariff bomb market may prove to be a huge decline in the market and investors of big business companies in America may deteriorate and shares may fall.
India described Trump’s decision as unjust
First of all, let us tell you that when Trump had announced a 25% tariff on India, he also threatened to stop the purchase of oil and weapons from Russia or to impose heavy additional tariffs. India also made its stand clear and made its stand clear and in this hurry, the US President imposed 25% of additional tariffs on India, making it equal to 50% of Brazil. India has issued a statement on this, calling it a very unfortunate, inappropriate, unjust and incompatible and said that the US has imposed additional tariffs on India for things that many other countries are adopting in their national interest. India will take all the necessary steps to protect its interests.
Market decline may increase further
The Indian stock market is already dull due to Trump’s frequent tariff threats. On Tuesday, when Trump made a statement of increasing the tariff on India within 24 hours, it was seen as a decline in the Sensex-Nifty on Wednesday and both the indices were seen trading in the red mark throughout the day. Now that Trump has fulfilled his threat, India has imposed 25 percent of additional tariffs on India, the continuing decline in Sensex-Nifty may increase even more.
However, there are still 20 days left for the new tariff to be implemented and this additional tariff is to be implemented from August 27, so the hope of agreed to some issues between the US-Russia and the US-India may slow down the market fall. HDFC Securities MD and CEO Dheeraj Reilly said that we estimate that the market may suddenly fall by 1-2 percent, but most people would like a solution. If these tariffs continue for a year, then it can be seen from 30 to 40 basis points on India’s GDP. However, some experts believe that this decline will be limited, as the Indian markets have faced the situation worse and the index is already in oversold position. On Wednesday, both the index Sensex and Nifty of the stock market closed down on the last trading day in the red mark on Wednesday. Business started in the market scared of Trump Tariff. The BSE Sensex opened at 80,694 below its previous closed level 80,710.25 and fell to 80,448, while the market shutdown slowed down, yet it fell 166.26 points to close at 80,543.99.
Like the Sensex, NSE Nifty also adopted the same path and started trading with a slight drop compared to its Tuesday’s closed level 24,649.55, but then it also declined and it fell to 24,539. However, in the last trading hour, the index also caught the path of recovery, but still slipped 75.35 points to close at 24,574.20.
From clothes to jewelery sector companies in focus
India has a big business in the US and India has a major share in imports there. India exports clothes, shoes, diamonds, electronics, medicines and other items to the US. In such a situation, the shares of companies connected to these areas can be greatly affected. Let us know that Trump had threatened to put a minor tariff on the pharma area on Tuesday and then increase it to 250 percent, after which there was a huge decline in the shares of all pharmaceutical companies from Sun Pharma, Ajantfarma, Glaxo Smithkline, Aarti Pharma, Biocon to Zidas on Wednesday.
