SENSEX and NIFTY on the Indian stock benchmark -Monday trade (February 3) decreased sharply after the annual budget exercise. In the low tank of the day, Nifty had 1.11 % to 23,222, and SENSEX attacked the lowest day of 76,756. Nevertheless, the index posted a mild recovery after a sudden loss.
On the other hand, a wider market continued to bleed, and the Nifty SmallCap 100 indexes decreased by nearly 2 % in the last count.
The reasons for the suddenability of the Indian stock market today are as follows:
Trump collects tariffs in Mexico, Canada and China
Trump has a 25 % tariff on imports of Canada and Mexico, and a 10 % tax on Chinese products, and the same thing will come into effect on Tuesday (February 4). However, the energy of Canada faces 10 % of tariffs.
The US President has revealed that this movement is responsible for his concerns about illegal immigrants and drug trafficking.
“The market may reduce the gap due to the weakness of the US and Asian indexes after the US President Donald Trump announces tariffs in Canada, Mexico, and Chinese products. VP (Research), Mehta Equities LTD.
Fantastic impacts can promote the pessimism of the domestic market for fear that similar US measures could be imposed on the import of India, as mentioned in the pre -election campaign. He added that there was.
Complete sale
All sectors that prohibit consumer durable goods are traded in a deep cut led by metal and energy packs. After the US President imposed tariffs on China, Canada and Mexico, the Nifty Metal Index could decrease by more than 2 %, caused a trade war, and could hinder global economic growth.
Rupy is slumped to a new low for green back
Tracking the trends in the world’s currency market, domestic units registered record low in 87.29 in the early days of today’s trade. This fall was caused by the background of the trade war between the United States, such as Canada, Mexico, and China.
In strong demand for dollars, traders expect further negative aspects of domestic currency.
Dollar spike index for triggering FII sales
The US dollar index (DXY) was the last trading of more than 1 % in 109.53, as Trump’s tariffs spurred the demand for safe assets.
However, he said that if the dollar index spike over 109.6 triggers more sales by the FII, the market will be applied to the market.
Dr. VK VIJAYAKUMAR, Chief Investor of Geojit Financial Services
