allworld.mediaNews from all over the world
Fears of 100% Tariffs and US Fed Decision Did Not Affect Stock Market, Which Showed Sharp Growth
Read more
Aaj Tak
www.aajtak.in

Fears of 100% Tariffs and US Fed Decision Did Not Affect Stock Market, Which Showed Sharp Growth

Despite signals of a potential stock market crash observed on Thursday, they proved unfounded. Although two negative reports from America caused a sharp drop in the Sensex and Nifty indices during the pre-session, as soon as the markets opened, concerns about Trump's tariffs dissipated. Both indices showed some sluggishness, but after the Bombay Stock Exchange (BSE) opened, the index began to rise, and the National Stock Exchange (NSE) Nifty-50 also showed similar dynamics.

The start of trading on the BSE was marked by a decline, as the Sensex index opened at 74,182 compared to the previous close of 74,336. However, it soon changed direction and began to rise rapidly, ignoring concerns about Trump's 100% tariffs. By the time of writing, the BSE Sensex had risen by approximately 200 points and was trading at 74,523. Similarly, the Nifty-50 index, consisting of 50 stocks, opened with a slight dip relative to the previous level of 23,217, but then gained momentum, surpassing the 23,300 mark.

It is worth noting that on the previous trading day, Wednesday, both indices—Sensex and Nifty—closed with confident growth. The BSE Sensex closed at 74,336.45, showing a rise of 332.63 points, while the NSE Nifty closed at 23,217.60, declining by 99 points. Nevertheless, after the release of two news items from the US, there were speculations that this strong growth on Thursday might be replaced by a sharp decline, but such developments did not occur.

Some of the main factors causing concerns about a stock market crash were two events related exclusively to America. The first was the US Federal Reserve (US Fed Reserve) announcing an interest rate hike. At the meeting led by Kevin Warish, it was decided to increase interest rates by 25 basis points, or 0.25 percent. As a result, the US federal fund reached a range of 3.75% to 4%.

The second significant reason that could heighten tension in India was the approval in the US Senate of a bill on new sanctions against Russia. This law grants US President Donald Trump the authority to impose tariffs of up to 100% on countries importing oil and gas from Russia, with India being among the major buyers of Russian oil.

Similar stories

Three US-related signals could trigger stock market crash
Read more
www.aajtak.in

Three US-related signals could trigger stock market crash

A new crisis in the stock market is possible, as evidenced by signals coming from abroad. In particular, two decisions made in the United States are causing concern among investors in India. Furthermore, the collapse of the American stock market and the movement of Gift Nifty indicate a probable significant decline in the Sensex-Nifty index. After two days of growth, the market has once again faced a threat.

After a period of prolonged stagnation, the market began to show activity. Previously, there was a continuous downward trend in the stock market. For example, before the start of the current week, the Sensex with 30 stocks and Nifty with 50 stocks showed a drop of more than 2%, leading to substantial losses for investors. However, over the last two trading days, the dynamic changed, and investors felt relief due to the rise of Sensex-Nifty. Nevertheless, new signals received by the market cast doubt on this relief.

Two of the most significant signals pointing to a potential stock market crash are related to the US. Firstly, the US Federal Reserve announced an interest rate hike. At the Fed meeting led by Kevin Powell, the interest rate was increased by 25 basis points, or 0.25%. As a result, the federal rate in the US reached the range of 3.75% to 4%.

The second major factor is the expected approval in the US Senate of a bill that introduces new sanctions against Russia. This step is causing tension in India. According to this provision, US President Donald Trump will gain the right to impose tariffs of up to 100% on countries importing oil and gas from Russia, and India is among the major buyers of Russian oil.

The third indicator signaling a possible crash comes from Gift Nifty, which is considered a key indicator for Sensex-Nifty and reflects the state of the American stock market. Following the announcement of interest rate hikes in the US, the Dow Jones index plummeted in the previous trading day, showing a sharp drop of 1.21% or 631 points. Moreover, Gift Nifty traded in the red zone since the beginning of Thursday, indicating deteriorating sentiment in the Indian stock market.

The indices of the Indian stock market, Sensex-Nifty, closed with strong growth on the previous trading day, Wednesday. The BSE Sensex finished trading at 74,336.45 points, demonstrating a rise of 332.63 points during the day. The NSE Nifty closed at 23,217.60 points, showing a drop of 99 points. However, signals from abroad indicate that this sharp rise may be followed by a significant decline on Thursday.

Popular