US TARIIFF DRAGS SENSEX 1000 POINT LOWER !
US TARIIFF DRAGS SENSEX 1000 POINT LOWER !
India's benchmark indexes inched lower on Tuesday, dragged by information technology stocks, as caution prevailed following U.S. President Donald Trump's comments about broader reciprocal tariffs.
This drop was primarily driven by investor concerns over U.S. President Donald Trump's announcement of reciprocal tariffs set to take effect on April 2, 2025. The anticipation of these tariffs introduced a high degree of uncertainty, leading to increased volatility in global markets, including India. AP News+3Business News Today+3India Today+3
Information Technology (IT) stocks were particularly affected, given their substantial revenue exposure to the U.S. market. The Nifty IT index declined by 1.8%, with major IT companies like Infosys and Tata Consultancy Services (TCS) experiencing notable losses. Analysts expressed concerns that the proposed tariffs could escalate into a broader trade conflict, potentially impacting the U.S. economy and, by extension, global markets. ReutersIndia Today+1Reuters+1
In contrast, other sectors showed resilience. For instance, automobile stocks rose by 1%, and Vodafone Idea surged by 10% following the Indian government's decision to increase its stake in the company. Reuters
The market's reaction underscores the sensitivity of emerging markets like India to global trade policies and highlights the importance of monitoring international developments for investors.
