Due to these reasons, the stock market on April 4, 9.5 lakh crores of investors drowned

Share Market: The Indian stock market started on Friday with a decline after US President Donald Trump’s announcement of tariff. Amid the fears of recession, all -round selling was seen in the market. The Sensex fell by 920 points or 1.21 percent to 75,375 of the day today, while the Nifty was trading at 22,899 in the afternoon to 22,899 in the afternoon.

Outcry in shares of these companies

Actually, the possibility of a trade war has increased due to Trump’s tariff. This has weakened the morale of investors. This decline in the stock market was so tremendous that today all the sectoral index was seen trading on the red mark. The biggest decline was seen in IT, metal and pharmaceutical stocks.

The total market value of listed companies in BSE declined by Rs 9.47 lakh crore to Rs 403.86 lakh crore. Meanwhile, shares of 2,496 companies declined, while 834 rose and 116 did not change. Many big companies like Tata Steel, Hindalco, Cipla, ONGC and Tata Motors have created a ruckus. There has been a decline of up to 7 percent of them.

Trump’s tariff brought earthquake in global market

Its impact on broad markets was even more serious as the Nifty Midcap 100 saw a decline of more than 3 percent. While the Nifty Smallcap 100 declined by 3.58 percent during the intraday business. With this, the process of an increase in the last two sessions came to an end. With this, let us see what are the major reasons behind this decline-

Fear of global trade war

Trump has brought a storm in the global market by putting tariffs on more than 180 countries. Trump has imposed a baseline tariff of 10 percent on all countries. Apart from this, separate recipes have also been installed. The US has imposed a 26 percent discounted tariff on India. While China, European Union, South Korea, Vietnam, Taiwan and Japan have also been imposed a high tariff of 20 to 46 percent.

Experts believe that retaliation against Trump’s tariff may lead to a situation of global trade war. Uncertainty may also increase in the global market. Geojit Financial Services Chief Investment Strategist VK Vijaykumar said, “There is a period of uncertainty in the market and the situation can remain the same till time.”

Increased pressure on metal stock

Due to heavy selling pressure in metal shares, the shares of Hindalco, Nalco, Vedanta and JSW Steel declined by 5 percent. This decline came due to the fact that the rapid decline from the trump’s tariff was now inspired by the fear that the widespread tariff declaration of former US President Donald Trump may reduce the demand for industrial commodities. This can create widespread concerns about inflation in global infrastructure.

Shock to pharma shares

Donald Trump has also indicated to install tariffs soon on the pharmacutical sector. Trump said on the previous day, we are going to put such tariffs on pharma, never before. He mentioned the pharma industry being seen in a separate category, for which the announcement could be made soon. The effect of Trump’s statement is that today the pharma index fell more than 4.5 percent. Apart from this, weak signal from global markets, selling of foreign investors are also responsible for this decline.

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