Trump Tariffs Stick to Stock Market Ceilings
US President Donald Trump & China President Xi Jinping (Image credit X.com)
Stock Market Today: Nifty Erases Sharp Losses to Reclaim 22.5k
By S Jha
New Delhi, March 11: Stock market on Tuesday dropped hints of seeing limits of tariff threats of US President Donald Trump. Tracking selloff in the US in equity markets, stock market staged a smart recovery on Tuesday.
Nifty erased losses of almost 130 points in early trades. The 50-share index at one point of time made gains of almost 200 points from day’s low.
Sensex and Bank Nifty also staged smart recoveries from day’s low. Day’s trading also marked the weekly expiry of Sensex option contracts.
The stock market went into steep losses in opening moments. The steep fall was on account of the crash in the US stock markets. Nasdaq had cracked by a whopping five per cent. Dow Jones and S&P 500 also cracked in a big way on tariff track of Trump.
The crude oil price also crashed overnight. The dollar index also went lower. The bond yields in the US also moderated. The three factors cheered the bulls in the Indian stock market. They saw the silver linings.
The crash in the crude oil sent shares of Bharat Petroleum tending in early trades. But the showstopper of the day was IndusInd Bank.
The shares of IndusInd Bank went into freefall. After reporting whopping losses in the derivative portfolio, shares of IndusInd Bank crashed by over 21 per cent. The stock was only a few days ago being recommended by major brokerages for buy.
The derivative portfolio means holdings in stocks and other speculative instruments to hedge funds. Experts said that the steep corrections in the stock market may have affected the derivative portfolio of the IndusInd Bank.
“The fall of the US stock markets reflects the CEILING to Trump’s tariffs in the short-term. He may want to do everything at once but he cannot without severe consequences as US production cannot rise as fast as he wants to raise tariffs,” Trinh, the Vietnamese economist said in a post on X.
She argued that “the more stocks fall and consumption and investment held back, the LESS LIKELY he will impose tariffs on EVERYONE”. Trinh sought to argue that the stock market crash in the US may make Trump rethink his tariff measures against countries.
Trump slapped tariffs against Canada, China and Mexico. He has vowed to slap reciprocal tariffs against all countries from April 2.
“US companies are the most global and a lot of global FDI stock (roughly 50%) is American and that reflects complex US company supply chains. So, tariffs disrupt that. Some tariffs at a slow enough pace is manageable. Too fast and furious will break something,” added Trinh.
(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)
Join the WhatsApp Channel of The Raisina Hills
Follow on Google News https://news.google.com/publications/CAAqBwgKMNK2vwsw39HWAw?hl=en-IN&gl=IN&ceid=IN%3Aen
About The Author
