Due to widespread investor selling ahead of US President Donald Trump’s reciprocal tariffs, which are set to take effect on April 2, domestic stock market indices plummeted by almost 1.5% on Tuesday.
The wider Nifty down 1.41 percent, or 332.15 points, to 23,187.2, while the BSE’s Sensex fell 1.69 percent, or 1,313 points, to 76,105.82.
Investors do not willing to take on risk for the next two days because the US will be enacting retaliatory tariffs on April 2. Prashant Tapse, Senior Vice President (Research Analyst) at Mehta Equities, stated, “They are selling their profits that they would have made in the past.”
The specifics of Trump’s reciprocal tariffs, which will be revealed tomorrow, are the main focus of international markets. The specifics of the tariffs and their effects on various nations and industries will determine the market patterns following the announcements, according to VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
With a return of 6.3% in March, India beat the majority of markets. The rally was aided by FIIs turning into purchasers and the ensuing short covering. Will there be another decline or can the surge continue? This will mostly rely on what tariffs Trump announces, according to Vijayakumar.
Externally linked industries like IT and pharmaceuticals may lead a market rally if tariffs are lower than anticipated. On the other hand, the market may experience another dip if the tariffs are high.
“Once the details are known, investors can wait, observe, and react,” Vijayakumar stated.
Tapse claims that Trump’s recent remarks against Russia and Iran have also raised concerns among investors.
Trump stated on Sunday that if he believed Moscow was impeding his attempts to put an end to the conflict in Ukraine, he would impose secondary tariffs of 25% to 50% on purchasers of Russian oil.
If Iran does not comply with US requests to limit its nuclear program, the US president threatened to bomb it.
In the early afternoon trading, 26 out of the 30 BSE businesses were in red. HDFC Bank (3.07 percent), Bajaj Finserv (3.01 percent), Infosys Ltd (2.67 percent), HCL Tech (2.59 percent), and Sun Pharma (2.36 percent) were the BSE businesses that suffered the worst losses.
