The domestic stock market has recorded a huge decline in the domestic stock market a day before the US imposed 50 percent tariff on India. After the trade negotiations between India and the US failed, new tariff rates will be applicable from 27 April. At the beginning of the second trading day of the week, the trust of the investors was shaken. The 30 -share BSE Sensex fell more than 600 points in early trade and fell into a red mark. Similarly, the Nifty 50 was also seen trading below 24,800 levels.
Big fall in stock market
According to brokerage firms, American tariffs may have the most impact on companies such as textile, engineering goods, leather and chemicals, which have a major share in the US market. Experts say that if concrete steps are not taken soon to find alternative markets and promote domestic consumption, then the impact on corporate income and market moves in the coming quarters may be deeper.
On the other hand, Washington has issued a notification to impose an additional 25 percent tariff on India. Subsequently, from Wednesday, tariff rates on Indian goods exports will double to 50 percent. The US has taken this action against India due to buying oil from Russia during the Ukraine War. This is the biggest trading action on New Delhi in recent times.
Trade with America will be difficult
After Trump’s decision and 50 percent of tariffs on India, New Delhi will directly affect commercial exports of about $ 86.5 billion to the US. Experts say that due to such a high rate of tariff, Indian goods will not be able to compete in the US market and exporters may suffer heavy losses.