Trump’s tariff decisions remain a wildcard for Indian markets, said Prashant Tapse, senior vice president of research at Mehta Equities, adding that uncertainty over his tariff plans for India has led to caution among investors. The U.S. policy framework under Trump could impact the strength of the dollar and Treasury yields, as well as raise inflation, which could mean fewer interest rate cuts.
The benchmark indices reflected investor caution amidst global and domestic uncertainties. Here are the five key factors contributing to this market downturn:
MUMBAI: Benchmark indices Sensex and Nifty surged in early trade on Thursday in tandem with a rally in global markets
India’s benchmark indices Sensex and Nifty rebounded in early trade on Tuesday after four days of sharp decline amid value
Stronger-than-expected US employment data released last Friday rattled global markets, diminishing hopes for an early rate cut by the Federal Reserve. With the US unemployment rate dipping to 4.1% in December and robust job growth, analysts now predict fewer rate cuts in 2025.
The better-than-expected US payroll data affirmed the case for Federal Reserve officials to keep interest rates on hold for the foreseeable future, in the face of lingering inflation and political uncertainty. That gave the dollar a boost Friday, while pushing up US Treasury yields.
Benchmark Sensex rose by 335.06 points, or 0.42 per cent, to settle at 79,724.12 in a special Muhurat trading session
Indian equity markets faced a turbulent session on October 9, with benchmark indices erasing early gains to close marginally lower. Despite starting the day in positive territory, the indices slipped amid volatile trading after the Reserve Bank of India (RBI) announced its decision to keep key policy rates unchanged.
On Monday, the BSE Sensex experienced a significant drop, plunging as much as 962 points or 1.17% to 80,726.06 during intraday trading. The NSE Nifty50 also fell sharply by 244 points or 0.97%, reaching 24,770 levels. Despite opening in the green, both indices quickly erased their gains and slipped deep into negative territory.
The Sensex and Nifty closed in the red for the fifth straight session on October 4, as rising tensions in