A 1,200-point fall in the Sensex. What’s causing the chaos in the stock market?
Stock market crash: As investors on Dalal Street worry about the effects of US retaliatory tariffs that will go into effect on April 2, the Sensex and Nifty plummeted precipitously.
Concerns over US reciprocal tariffs that would take effect on Wednesday, April 2, caused stock market investors to react to negative global cues, which caused benchmark indices on Dalal Street to plummet on Tuesday.
At 11:48 am, the NSE Nifty50 down 328.55 points to 23,190.80, while the S&P BSE Sensex fell 1268.32 points to 76,146.60. As volatility spiked during the day, the majority of broader market indices also fell in tandem with the benchmarks.
Because of worries about US retaliatory tariffs, IT stocks were among the hardest affected. With shares of Infosys and Tata Consultancy Services (TCS) down more than 2%, the Nifty IT index was down 2.3%.
US reciprocal tariffs are a source of concern.
Given the uncertainty surrounding the effects of Donald Trump’s reciprocal tariffs on both the local economy and international trade, the stock market’s current volatility is in line with analysts’ predictions.
To lessen the damage, the US and India are discussing a trade agreement, although no final deal has been reached. According to recent reports, negotiations are going well and both countries are getting close to reaching a mutually beneficial agreement.
However, traders, especially individual investors, are worried about Dalal Street’s response after the reciprocal tariffs go into force because there hasn’t been an official statement. India Today Digital was informed by experts that a number of equities are probably going to be affected.
The specifics of Trump’s reciprocal tariffs, which will be revealed tomorrow,are the center of attention on the world market,according to Dr.VK Vijayakumar,Chief Investment Strategist at Geojit Investments. The details of the tariffs and how they affect various nations and industries will determine market behavior after the announcement.
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Positively,Vijayakumar pointed out that India’s 6.3% return in March beat that of the majority of international markets. He explained this by saying that the surge was aided by short covering caused by foreign institutional investors (FIIs) turning into purchasers.
When reciprocal tariffs take effect, stock markets might have a few erratic sessions, but they might soon stabilize. This is due to the possible trade agreement,which would lessen the impact on India in comparison to nations like China,Canada,and Mexico.
Experts say that at this point,investors should “wait and watch” to see how reciprocal tariffs affect domestic stocks.