There is chaos in the US stock market. The US market declined by nearly 6 percent in Nasdaq on Thursday night, while the Dow Jones index fell by 1,600 points, or about 4 percent. S&P 500 also declined by about 5 percent. Earlier, such a big decline in a day was on 16 March 2020. The Indian market has declined a major decline after the devastation in the US. But RIL shares have fallen by more than 4 percent. Reliance Industries’ shares are considered to be the main reason for the global effect. Where the risk of recession has increased.
On April 4, heavy selling was observed in Indian stock markets. On this day, the Sensex fell 930 points or 1.22 percent to close at 75,364. The Nifty 50 also fell 345 points or 1.49% to close at 22,904. There are 4 major reasons for this decline. Apart from tariffs, these reasons for increasing the possibility of recession? Fear of global trade war: After Trump’s new tariff, China and Canada have also threatened to take retaliation. Investors are nervous about this. The US has imposed 26% import duty on Indian goods and 10% on other countries. In response, Canada has imposed 25% tariffs on American vehicles. This has increased the threat of global trade war.
Global markets fall: S&P 500 index declined by 5% in the US and 5.5% in Nasdaq, which is the biggest decline since 2020. Asian markets are also broken. Japan’s Nikkei was 3% below, South Korea’s Kospi was 2% below. Regional pressure: Pharma stock, IT stock and auto stocks are under heavy pressure. Reliance shares are also selling heavy selling. The Nifty IT index declined by 2%, with the most damage to Koforge and Persistent Systems. Selling continued in metal shares.
Possibility of inflation increases: The biggest threat of recession in the US is inflation. Many experts estimate that inflation in the US is going to grow rapidly, as similar products as other countries will now be available at high prices. This will increase inflation. At the same time, there is a decline in the dollar index, which is not a good sign for the American economy.
Is the risk of recession increasing? After the tariff by Trump, the possibility of inflation has increased in the global market, which is increasing the risk of recession. Senior economist Brett Ryan, a Deutche Bank, told the Reuters News Agency that Trump’s tariff may reduce US development by 1–1.5 percent this year, which will increase the risk of recession. However, there is no such crisis in India yet. There are good signs for India’s economy.
