Are global stock markets on decline due to concerns of US economic recession; Sensex falls 200 points, Nifty by 30 points

 

Global stock markets have seen a decline due to concerns of US economic recession.

Asia's stock markets have also declined. This recession has come after Trump's comment, when he was asked about concerns of a possible recession, he said that the US economy is going through a transition phase.

Although Trump has not made any direct comment about the economy after that statement, his top officials and advisors have asked investors not to be afraid.

When the stock market opened on Tuesday, Japan's Nikkei 225 was down 1.7 percent. South Korea's stock index Kospi was down 1.5 percent and Hong Kong's Hang Seng index was showing a decline of 0.7 percent.

After a decline of up to 4% in the US markets, the Sensex has fallen by 200 points on Tuesday, March 11, the second trading day of the week. It is trading below 73,700. Nifty has also fallen by 30 points to 22,420.

The biggest decline has been seen in IT and private bank stocks. Nifty IT and Private Bank indices are down by about 1.50%, while the auto index has fallen by about 0.50%. Nifty Realty is trading with a maximum gain of 1.50%. At the same time, IndusInd Bank's stock is down by 20%.

Reason for decline in market

The main reason for uncertainty in the market is the threat of imposing reciprocal tariffs by US President Donald Trump. Trump said, "We will impose reciprocal tariffs. Be it any country—India or China, whatever they charge us, we will also charge the same. We want equality in trade."

Reciprocal means to balance both sides of the scale. If India imposes 100% tariff on some selected goods, then the US will also impose 100% tariff on similar products.

Asian markets also declined

Asian markets are also seeing a decline. Japan's Nikkei fell by 1.74%, Hong Kong's Hang Seng Index fell by 1.18% and China's Shanghai Composite fell by 0.45%.

On March 10, foreign investors (FIIs) sold shares worth Rs 485.41 crore, while domestic investors (DIIs) bought shares worth Rs 263.51 crore.

Status of US markets

On March 10, the US Dow Jones closed down 2.08% at 41,911, S&P 500 closed down 2.70% at 5,614 and Nasdaq Composite closed down 4.00% at 17,468.

Due to Trump's tariff policy, the Dow Jones closed down 890 points (2.08%) at 41,911. The Nasdaq Composite fell 4.00%, falling 728 points to 17,468. The S&P 500 index fell 2.70%.

Tesla's market cap fell

Shares of Elon Musk's company Tesla fell 15.43%, due to which the company's market cap has decreased by Rs 4 lakh crore. This is the biggest day-fall in the last 5 years.

On Monday, the Sensex fell 217 points to close at 74,115. The Nifty fell 92 points to close at 22,460. Realty and oil and gas stocks saw the biggest decline.

Prakash Kumar Pandey