Weakness is expected in the initial trading of the Indian stock market i.e. Sensex and Nifty 50 on Monday. The reason is US President Donald Trump’s imposition of 100% tariff on Chinese goods. Due to this, fear has spread in the global market and the Asian market also looks weak.
Bad mood of global market
Last week, America’s stock market closed with a huge fall. The S&P 500 and Nasdaq saw their biggest one-day decline in the last several months. At the same time, Asian markets also opened lower on Monday and there was no trading in Japan’s stock market due to holiday. South Korea’s Kospi fell 1.35% and Hong Kong markets were also weak.
Strength of Indian market last week
However, on Friday, the Indian stock markets (Sensex and Nifty 50) closed strongly for the second consecutive day. Nifty 50 crossed the level of 25,200. The Sensex rose by 328.72 points and closed at 82,500.82. Nifty 50 closed at 25,285.35, up 103.55 points.
What triggers will investors keep an eye on this week?
US-China tariff war
India’s inflation data
Quarterly results of companies (Q2 Results)
US government shutdown
IPOs activities
flow of foreign funds
Domestic and global economic data
geo-political change
War between America and China and its impact on India
Trump has announced double tax i.e. 100% tariff on goods coming from China and has said to impose a new ban on the export of critical software from November 1. Apart from this, he also raised questions on the meeting with Chinese President Xi Jinping.
China has also adopted a tough stance in response. China says they do not want a tariff war, but are not afraid either. He has also appealed to talk to America.
What is visible in the market?
After the fall of the American market, there has been a slight recovery in its futures market (property related contracts).
Gold prices have reached record highs. People are investing in it to keep their capital safe.
There is a slight fluctuation against the dollar and other currencies.
Crude oil prices are slightly above a five-month low.
What matters to you?
If you invest in the stock market then Monday may be a bit sensitive. Global and domestic events may have an impact on the market. In such a situation, do not take too much risk in the market wisely and invest only in good companies. If you want to buy or sell any stock, do your research and take expert advice.
There may be slight fluctuations in the market in today’s trading range, but there is a possibility of remaining positive for a long time. If investors remain patient and cautious, they can get good profits in future.
