Why Donald Trump’s tariff policy cannot dictate Indian markets for a long time? explicitly

Trump’s impact: The Indian scholar market extended the string of loss for the 10th straight session, dragged by a constant foreign capital flow against the background of American tariffs and a slowdown in internal growth. During the third consecutive day, the BSE Sensex reference decreased by 96 points to close under 73,000 brand, and NSE Nifty 50 recorded the longest series of falls in its three-decade history, on Tuesday, amid a global capital route caused by commercial war worries.

The BSE barometer with 30 actions closed at 72,989.93, decreasing by 96.01 points or 0.13 percent. During the day, 452.4 points or 0.62 percent decreased at a low level of 72.633.54, but recovered some losses in the second half. NSE Nifty 50 decreased by 36.65 points or 0.17 percent to 22,082.65. The index opened below the level of 22,000 to 21,974.45, but recovered some losses later. Nifty decreased by four percent in 10 sessions and 16 % of a record hit in September.

US President Donald Trump escalates the fears of commercial war

Trump’s 25 percent rates over Canada and Mexico and a 20 percent cumulative tariff over China came into effect on Tuesday. Trump also said that mutual tariffs will start on April 2, increasing commercial tensions and sliding global financial markets. China responded at American rates, announcing 10-15 percent increases in tax imports covering $ 21 billion from US agricultural and food.

Larger rates, in addition to their potential negative impact on global growth, could stimulate inflation in the US, leading to higher interest rates for longer time and injury flows on emerging markets, such as India. Indian IT companies, which receive a substantial part of their US incomes, have also been hit by price pressure in the US. The IT index has dropped by 14 percent so far (YTD) and has hit a low -eight -month and restless market.

Dr. VK Vijayakumar, the main investment strategist, Geojijin Financial Services said: “Trump’s uncertainty is aggravated in global trade. The 25% rate for Canada and Mexico and the 20% rate on China (with 10% additional imposed), which was known.

If Trump’s tariff policy continues in this way and starts to affect other countries, it will be bad for global trade and global economy. India will not be spared. So what will be the eventual result?

There is a factor that will tan the Trump and this is the market reaction. Even the powerful Trump cannot influence markets. The rates will soon raise inflation in the US, and Fed can be transformed. The US stock market, which now has a perfection price, can undergo a severe correction, even an accident. This result, which Trump awakens, can tame and bring a certain health and balance in his policies. We don’t know when this will happen.

In the short term, there is no chance of returning to the Indian market, even if the assessments are correct. Investors should remain cautious and wait to see how the scenario is going on. “

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