Following the presentation of the country's General Budget for 2025, expectations were high for a surge in the stock market. However, on Monday, the market opened to a significant decline. The BSE Sensex dropped by 700 points, while the NSE Nifty fell by over 200 points, marking a considerable setback for investors. Despite the budget announcements, the market displayed sluggishness, compounded by the ongoing tariff disputes initiated by US President Donald Trump.
Trump has imposed tariffs on Mexico, Canada, and China, with discussions of potential tariffs on the European Union looming.
Sensex down
The Bombay Stock Exchange (BSE) Sensex opened at 77,063, down from the previous level of 77,505, and quickly fell by 700 points to 76,774. The Nifty index also opened lower at 23,319, down from 23,482, eventually reaching 23,239 after a decline of 220 points. Investor sentiment appeared nervous as the market continued to show weakness.
During the budget presentation on Saturday, the market remained relatively flat. The Sensex closed with a slight gain of 5 points, while the Nifty ended with a loss of 26 points. Experts had anticipated that income tax exemptions and other significant budget announcements would positively influence the market, but this expectation was not met, leading to increased disappointment among investors.
The tariffs imposed by Trump on Canada, Mexico, and China triggered a sharp decline in the US market, which in turn affected the Indian market. Dow futures fell by 550 points, and both the S&P 500 and Nasdaq also experienced declines, contributing to the overall weakness in Indian markets.
large-cap stocks, L&T, NTPC, Powergrid, Tata Steel, Tata Motors, and Reliance saw significant declines. Mid-cap stocks such as Hindustan Petroleum, SAIL, and BHEL were also affected, along with small-cap stocks like BDL and JWL. Overall, investors faced substantial losses.
Advice for Investors
Market experts advise that the impact of the global market may persist in the short term. They recommend that investors refrain from making hasty sales. While volatility is expected to continue, there may be opportunities for improvement in the long run. Investors should monitor market movements and consider investing in stocks with strong fundamentals.
Indirect effects on India
In response to the tariffs imposed by Trump, Finance Minister Nirmala Sitharaman said that there could be indirect effects on India. She stated, "We do not know whether something can happen to us or not. Whatever tariffs have been imposed on Mexico, Canada, and China may have an indirect effect on us." She emphasized the uncertainty surrounding the potential impacts and assured that the situation would be closely monitored.
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