There is chaos in the Indian stock market, it has continued to decline for the last 5 days. After 2 pm on Friday afternoon, there was a sudden earthquake in the Sensex. The Sensex fell around 800 points to 80,359.93. The Nifty slipped below 24700. The Nifty recorded a huge decline of more than 250 points.
Actually, the shares of pharma and IT companies are seeing a huge decline. The impact of an increase in H-1B visa fee has been very bad for the current week shares. As the shares continue to fall, the country’s largest IT company TCS shares slipped below 2900 on Thursday. While Infosys shares reached below 1450.
At the same time, US President Donald Trump announced tariffs on several areas including Pharma late on Thursday night. 100 percent tariff has been announced on pharma, due to which there was heavy selling in Indian pharma companies today. Sun Forma’s shares have fallen by 3 percent. Dr. Reddy’s shares are also seeing a decline of about 2 percent. The decline in the Indian market is mainly due to American decisions, the first US changed the rules of H-1B visa and now it has put tariffs on several areas. Also, American investors are continuously selling in the Indian market.
There are three main reasons behind this decline:
1. Effect of Tariff on the pharma sector, US President Donald Trump has announced a 100% duty imposition of branded drugs. In addition, 50% on kitchen cabinet and bathroom vanity, 30% on upholstered furniture and 25% on heavy trucks are planned to be imposed. These new fees will be applicable from October 1. After this announcement, selling pressure in Indian pharma companies increased. The Nifty Pharma Index fell more than 2 percent.
2. The Indian IT sector was already under pressure due to an increase in the H-1B visa fee in IT stocks, but the weak quarterly results of the axcher worsened the atmosphere. The Nifty IT index recorded a decline of up to 1.3%. Another reason is the possibility of an increase in H-1B visa fee, which may increase the cost of Indian companies.
3. Foreign investors withdrawn Rs 4,995 crore from the Indian stock market on 25 September. A total of Rs 24,454 crore has been sold so far this month. Investors are also concerned about income growth.
Apart from this, Asia’s stock markets are also seeing a decline after tariff decisions. Japan’s Nikkei, China’s CSI 300, Hong Kong’s Hangseng index closed down. The US markets also closed down with a decline. These global negative waves put pressure on the Indian market.
