Share Market Crash : The stock market has fallen during the first trading session after the presentation of the Union Budget. The Sensex and Nifty were down 1-1 per cent. Let’s know what is the reason for the decline in the stock market?
Donald Trump’s tariff war
US President Donald Trump promised to impose heavy tariffs on many countries during the election. They have just started it. Trump has announced that tariffs will be imposed on Mexico, Canada and China. Goods from Mexico and Canada will be subject to a 25 percent tariff. At the same time, it has been decided to impose a 10 percent tariff on China.
Trump’s decision has sparked fears of a global tariff war. Its fire can come to all countries around the world including India. This is why most stock markets are witnessing a sharp decline.
Will Trump’s tariff war affect India too?
The Trump tariff war is likely to affect most major economies around the world. However, it is not clear what impact this will have on India. Finance Minister Nirmala Sitharaman said this in an interview to news agency PTI.
Japan’s stock market also fell rapidly
Japan’s Nikkei index fell 2.58 percent. South Korea’s KOSPI has fallen more than 3 percent. Shares of China and Hong Kong are also falling. However, there has been a relatively small decline compared to India and Japan. Because both stock markets anticipated tariffs, they were more likely to be tariff-appointed.
In India, the Sensex closed at 77,028.44, down 477 points, or 0.62 per cent. The Nifty closed at 23,289.65, down 192 points, or 0.82 per cent.
Does the market look frustrated with the budget?
The stock market was expecting a sweeping improvement in the budget. Finance Minister Nirmala Sitharaman has given a big relief to the middle class by exempting income up to Rs 12 lakh from tax. This will save more money in the hands of the common people and they can increase the expenditure. This factor can increase consumption, which can benefit companies in the form of increased sales.
However, this process is expected to take a long time. In the budget, the finance minister has not made any specific provision that will boost the market in the near term. This is the reason why there was no significant increase in the stock market even on Budget Day.
