India Stock Market Sinks while China Rises in Trump Tariff Shadow
PM Narendra Modi with US President Donald Trump Image credit The White House
Stock Market Crashes After Trump Raises Tariff Issue with Modi
By S Jha
New Delhi, February 14: The stock market was trading lower with deep cuts on Friday. Indices dived in deep red after US President Donald Trump spoke of “high trade barriers”.
Trump was speaking at a joint press conference with Prime Minister Narendra Modi. The Indian stock market was bearish in contrast to bullish notes of global equity markets.
Chinese Hang Sang was trading with gains of almost two and a half percentage. Other Asian peers were trading flat to positive on Friday. Japan’s Nikkei was trading lower with loss of three quarters percentage.
Trump signed an Executive Order to impose reciprocal tariffs with trading partners. “Now, the US will charge what others charge us on tariff. It’s fair for all, with no difference,” said Trump at a press conference with Modi.
Sensex lost almost 400 points after two hours of trade on Friday. Nifty was trading with loss of almost 180 points. The 50-share index once more went lower than pivotal 23000.
Except for FMCG, all sectors were trading in red on Friday. The healthcare index was trading with maximum losses. Market participants fear that the pharmaceutical companies exporting to the US market may suffer due to the reciprocal tariffs.
The oil and gas index were also trading lower by one and a half percentage. This is despite India and the US inking agreement for energy partnership. India’s foreign secretary Vikram Misri said that Indian imports from the US in oil and gas may soon go up to $25 billion a year.
Market participants fear that China will gain with reciprocal tariffs by the US. China already a gainer in the global supply chains may score higher against others due to undervalued currency, added market participants.
Shares of speciality chemical companies were also trading with deep cuts on Friday. Such companies may also face stiff competition with higher tariff by the US, fear market participants.
Trump claimed in the press conference that the US has a deficit of almost $100 billion in trade with India. Modi, however, said that India will seek to double the trade with the US.
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