US Tariffs Spark Major Sell-off in Indian Markets
Indian markets plunged as President Trump imposed a 25% tariff on Indian goods, causing investor panic. NIFTY 50 and BSE Sensex dropped significantly, with concerns about slowed exports and economic impacts. Experts urge reforms to bolster domestic consumption as the government navigates these challenging trade tensions.
- Country:
- India
Amid escalating trade tensions, Indian stock markets experienced a significant downturn on Thursday following US President Donald Trump's declaration of a 25% tariff on Indian imports. This announcement, coupled with penalties on Russian crude purchases, led to widespread investor anxiety, subsequent sell-offs, and apprehensions of dwindling export activity.
The NIFTY 50 index saw a decline of 212.80 points, opening at 24,642.25, a drop of 0.86%. Similarly, the BSE Sensex fell sharply by 786.36 points, opening at 80,695.50, down 0.97%. The bearish trend extended across various market sectors, with notable dips in the Nifty Midcap 100 and Nifty Smallcap 100, both losing over 1%.
Market analysts indicate that while the trade impact of US tariffs might be temporary, immediate government action is necessary to invigorate domestic consumption and maintain economic stability. Banking expert Ajay Bagga highlighted the likely repercussions on sectors like electronics, textiles, and engineering goods, while advocating for significant regulatory reforms and economic stimuli to counter potential downturns.
(With inputs from agencies.)
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