Now Trump has burst a 50% 'Tariff Bomb', which way will the market turn?
Trump Tariff: On Wednesday US President Trump has increased the 25% tariff imposed on India to 50%. Its major effect can be seen on the stock market today. While already sluggishness is being seen in the Indian Stock Market due to the ongoing upheaval regarding the Trump tariff. In such a situation, the sudden double tariff bomb can prove to increase the decline in the market and the sentiment of the investors of the companies doing big business in America can deteriorate and the shares can fall in the market.
India called Trump's decision unjust
First of all, let us tell you that when Trump announced a 25% tariff on India, he also threatened to stop the purchase of oil and weapons from Russia or impose a huge extra tariff. India also retaliated and made its stand clear and in this panic, the US President imposed an additional tariff of 25%, making it equal to Brazil's 50%. India has issued a statement on this, calling it very unfortunate, unfair, unjust and inconsistent and said that America has imposed extra tariff on India for those things, which many other countries are also adopting in their national interest.
Also Read: Trump imposed 25% extra tariff on India: will be implemented after 21 days
Share market may decline
The Indian stock market is already sluggish due to Trump's continuous tariff threats. When Trump had given a statement on Tuesday that he would increase tariffs on India within 24 hours, its effect was seen in the form of a fall in Sensex-Nifty on Wednesday and both the indexes were seen trading in the red mark throughout the day. Now that Trump has fulfilled his threat and imposed an additional 25 percent tariff on India, the ongoing fall in Sensex-Nifty may become even more rapid.
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Like Sensex, NSE Nifty also moved and started trading with a slight fall compared to its Tuesday close of 24,649.55, but then the fall in it also increased and it fell to 24,539. However, in the last trading hour, this index also took the path of recovery, but still closed at 24,574.20, slipping by 75.35 points.
Companies from clothing to jewelry sector shares are in focus
India has a big business in America and India has a large share in the imports there. India exports clothes, shoes, diamond jewellery, electronics, medicines and other goods to America. In such a situation, the shares of companies related to these sectors can be affected a lot.
Summary
Let us tell you that Trump had threatened to impose a small tariff on the pharma sector on Tuesday and then increase it by 250 percent, after which there was a sharp decline in the shares of all the pharma companies from SunPharma Share, AjantaPharma, Glaxo SmithKline, Aarti Pharma Share, Biocon to Zydus during trading on Yesterday.
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