- To Be Following Major Announcement
- Donald Trump is going to pay a really important setting you back tariffs and commerce policies.- It will happen at midnight (US time) this announcement called as “Liberation Day” in the US.
- It will provide information related to tariffs and measures taken against many countries.
- Impact on India:
- India expected some reprieve initially.
- But a US government document lists extensive complaints about India.
- Trump may praise India and PM Modi but could still impose tariffs, saying he is forced to act due to high Indian import dutyIf India begins purchasing of certain US goods, it may also ease tariffs.
- Stock Market Reaction:Over the last 2 days, Foreign Investors have sold ₹10,255 crores worth of Indian stocks.
- Indian shares rallied 6% in March, but uncertainty led to volatility.
- Jitters from investors about untimely tariff hikes, and accordingly reducing exposure.
- Global Market Concerns:
- The global market is also uncertain.
- China has signaled it is prepared to strike back if the U.S. moves on tariffs.– A trade war can hurt all major economies.
- Possible Scenarios:
- Any lower than expected tariffs on India could buoy the market.
- If harsher, markets could potentially be in for a big fall.”
- Investors will wait for clarity before investing further.
— Larger Economic Impacts:
- Global markets are likely to fall if the US markets tumble.
- U.S. economists are already warning of an impending recession.
- Trade wars hurt both parties, and it is still up for debate whether the US economy can handle such an approach.
- Investor Strategy:
- Analysts recommend getting in gradually and cautiously.– Domestic consumption driven sectors in India may be little more safer.
- Duration of uncertainty will likely shape long-term investors, depending on sectors.
- Final Thoughts:
- The most important announcement is what will set the course of the market.
- Global markets will get hit if trade tensions escalate.
- If there is clarity and stability again, markets may bounce back.
- Investors are in a wait-and-watch mode for the time being.
