Stock Market Crash: Indian Stock Market Indis, BSE Sensex and Nifty 50, crashed on Friday Global market turmoil US President Donald Trump began with the recession concerns and new tariff announcements. BSE Sensex and Nifty50 declined by more than 1%.
According to the ET report, the total market price of BSE-list companies is reduced by Rs 9.47 lakh crore, which has reached Rs 403.86 lakh crore.
Why is the market falling today?
The following factors today contributed to the stock market accident:
1) Business war concerns after Trump’s tariff declaration
Donald Trump accelerated international trade tension by implementing a universal 10% baseline tariff on US imports. Nations with adequate trade surplus face high tariffs: India (26%), China (34%), European Union (20%), South Korea (25%), Vietnam (46%), Taiwan (32%) and Japan (24%).
The main investment strategist at Geojit Financial Services, VK Vijaykumar said, “The markets are going through increased uncertainty, which is likely to last for some time. A business war has been launched by Trump, European Union and others by trump and anti -retarder tariff. It will only expand the duration of uncertainty and confusion in the market.” He indicated that declining global trade and decline in growth would affect India’s economy.
Also read Is this 26% or 27%? Donald Trump’s mutual tariff on India revised down by 26% in New White House document
2) Global markets tabble amid worries of recession
The decline of sharp in the price of S&P500 in the price of S&P500 during its most important daily decline since 2020 hit Wall Street. The recession severely affected the major global indices, falling 3.4%of Japan’s Nikkei, possibly facing its most challenging week since the Kovid -19 recession in March 2020.
Increased uncertainty inspired investors to find safe property, resulting in an increase in investment in American treasures and gold, indicating widespread caution in the market.
3) Indian pharmaceutical industry faces tariff pressure
The drug sector in India experienced significant damage after Trump indicated the new area-specific tariff. Notable companies, including Aurobindo Pharma, Laus Labs, IPCA laboratories and lupine, saw a decline of up to 7%.
During a press interaction of his Air Force, Trump announced: “Pharma is going to begin, I think, a level you’ve not really seen before,” suggesting the adjacent trade functions.
He expanded in detail on the targeted approach: “We are looking at Pharma as a separate category. We will declare that some time in the future, not in a distant future”, suggesting specific measures for the drug field.
The announcement reversed the previous day’s gains, when pharmaceutical share had increased on perceptions to avoid trade restrictions.
Also read Donald Trump announced 26% ‘concession’ mutual tariff on India: What will be the effect and whether the Indian economy is relatively untouched?
4) Heavyweight Stock Drag Indis
Market leader Reliance Industries pulled the indices down, with significant losses in major areas. Nifty Pharma fell (-6.2%), while Nifty Metal Gir (-5.3%). Other major segments including IT, auto, realty and oil and gas have declined from 2-4%.
Extensive sales pressure caused investors to be cautious, as both global uncertainties and region-specific challenges faced the market spirit.
