US President Donald Trump's tariffs have unleashed chaos across the globe, plunging Indian equity markets to their 10-month low. Sensex opened nearly 4,000 points lower, sliding over 3.5% since its last trading session, while Nifty tanked over 1,000 points this morning. The crash follows a massive sell-off in Asian equities, panicked by Trump's radical policies, and US futures pointing at significant losses when it resumes trading this evening.
The tariffs - billed as the harbinger of a "golden period" for US industries - seek to undo trade practices that President Trump believes have been unfair. The tariffs are country-specific and go as high as 50%. The rate announced for India is 26%, which has set off fears among exporters and traders, in addition to a 10% baseline duty applied to all nations.
A defiant Trump appeared unmoved by the bloodbath in global markets, equating his tariffs with a medicine that is required to "fix something" while speaking to reporters this morning.
Indian Equities Lose 3.5%
Sensex crashed 3, 939.68 points to 71,425.01 in early trade as trading resumed at 9 am after the weekend holidays. Nifty tumbled 1,160.8 points to 21,743.65 during this period. Sensex, a pack of India's top 30 companies listed on the Bombay Stock Exchange, was down over 2,700 points at 10 am, while Nifty, the National Stock Exchange index, is just above the 22,000 mark.
Rupee also opened lower this morning, falling 30 paise to 85.74 against the US dollar.
Analysts suggest Trump's tariffs were bound to cause fears in Indian markets and that the country now needs financial reforms to protect its domestic economy from the global trade war.
“India will face the heat, not due to domestic reasons, but as an interlinked chain in the global portfolio flows. India will need a fiscal, monetary and reform package to protect the domestic economy from this global economic winter that is threatening to settle in,” Ajay Bagga, a market expert, told ANI.
Asian Equities
Asian equities, the first among all markets to open, have been hit the hardest as Trump tariffs extended a massive sell-off on the bourses in China, Japan, Taiwan, and Hong Kong
Source: NDTV