Stock Market Crash: Impact of Reciprocal Tariffs
The stock market has experienced a sharp decline, with the Sensex dropping over 1,100 points due to the reciprocal tariffs being imposed by U.S. President Donald Trump. Investors have adopted a cautious stance, and many have been booking short-term profits, leading to a significant crash today. The BSE saw 160 stocks reach their lowest point in years. The Sensex opened with a decline of 500 points, and within moments, it dropped by 639.13 points, trading at 76,537.61 points by 10:30 AM.
Nifty Faces Increased Bearish Pressure
Bearish sentiment has also intensified in the Nifty index. The Nifty 50 dropped another 180.25 points, reaching a low of 23,339.10 points, and by 10:30 AM, it was down by 211.60 points, trading at 23,307.75 points. Of the 50 stocks in the Nifty index, 26 showed gains, while 24 saw declines.
Telecom Stocks Surge Amid Market Decline
Despite the broader market downturn, telecom stocks saw increased buying at lower levels. Indus Tower shares surged by 7.26%, while TTMAL, Tejas Networks, and Suyog saw gains of 6.27%, 5.40%, and 5.00%, respectively. Bharti Airtel shares also showed improvements. As a result, the BSE Telecom Index rose by 2.86%. The Indian government’s decision to convert Vodafone Idea’s outstanding spectrum liabilities into equity has provided relief to the company, further boosting its stock prices. This move followed the Cabinet’s earlier rejection of a proposal to grant significant relief to the company regarding AGR (Adjusted Gross Revenue) dues.
Trump Remains Firm on Tariffs
President Trump had announced the implementation of reciprocal tariffs starting April 2. However, there were reports suggesting that the tariffs might be postponed due to U.S. Liberation Day. Despite this, Trump remains firm on the issue, prompting investors to adopt a cautious approach and await further clarity. Last week, he had announced a 25% tariff on automobiles, and foreign investors, who had been net buyers in the last six trading sessions, turned into net sellers on March 28, with net selling of ₹4,352 crore.
Banking and Realty Stocks Hit Hard
The banking and financial services sectors saw significant declines, with the Bankex index falling by 1.01% and the Financial Services index dropping by 1.05%. The Realty index tumbled by 2.13%, while the IT and Technology indices were also down by 2.01% and 1.25%, respectively.
