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There is a lot of uproar in the Indian stock markets at this time and is of uncertainty. Sensex and Nifty’s week’s trick has also confused many market experts. Small and medium stocks have seen a significant decline even after six days. According to the market experts, there are three major reasons behind this uproar of the stock market. So, let us know which factors are the factors, due to which this uproar continues:
1- Concern about global tariffs:
Actually, US President Donald Trump has indicated to install new tariffs on the automobile sector. This has caused a big shock to the sentiment of investors. The first President Trump had indicated that not all the new tariffs would be implemented from April 2. This recently brought some relief to the market.
The market was hoping that perhaps reciperoching tax will not be imposed on India from April 2. But, till now it remains uncertain. However, the business talks between the US and India regarding this are starting from 26 March. In a report by news agency Reuters, a White House official made it clear that President Trump is standing on his policy. Due to this, there is confusion among investors and they are avoiding new stakes till clarity about the trade policy.
2- Profit after boom
The stock markets had seen the biggest rise in the last four years. This fast was seen on Monday. After which the profits of investors were seen. Due to selling pressure, 11 out of 13 sectorial index out of 13 went into red mark.
Only the Nifty, private bank and IT sector were successful in keeping themselves in the green mark. Equity head of Kotak Securities Shrikant Chauhan said that the structure of the market remains positive in the short term. But due to more purchases, selling is being done at high levels.
3- Weak global signal
The third and last reason is weak global signal. The impact of weakness in the global market, especially Asian markets, also appeared on the Indian stock markets. Market experts say that the market is currently looking towards global signals for its move, but how durable the market will be, it will depend on which companies have corporate quarterly consequences and how is the situation of consumption in the domestic market.
Significantly, due to weak results of companies, the stock market had seen a decline for the last several months recently. Due to this, market experts started finding the valuation of companies high. Till the bounce in corporate income, there will be doubt about any speed in the market being durable. Anyway, there is a saying that the share prices are a slave of its earnings in the long term.
