Share Market News: Indian Stock Market Witness Sharp Decline Due to Global Trade Tensions

Share Market News: The Indian stock market fell sharply on March 4, opening in negative territory. Early trading saw a surge in heavy selling, with market volumes jumping from 424.5 million to 72,671.44 million before falling to 152.35 million and eventually finishing at 21,966.95 million. The decline coincided with the US government’s introduction of tariffs on several countries, initiated by President Donald Trump. The imposition of a 25% tariff on Canada and Mexico shook investor confidence, as many expected a last-minute compromise. Furthermore, unfavorable economic indications, such as a slowdown in the real estate industry, increased unemployment claims, and decreased consumer spending, undermined market confidence. 

Donald Trump’s New Tariff Policy

The new tariffs, which went into effect on March 4, are likely to have a significant impact on the trade between Canada and Mexico, totaling more than $918 billion. The decision has raised concerns about a future trade war in North America, influencing currency valuations, with the Mexican peso and Canadian dollar both falling. Furthermore, China has responded to the tariff increases by promising to preserve its economic interests, escalating global trade tensions. The Indian stock market remained low due to ongoing foreign investor outflows, geopolitical tensions between Russia and Ukraine, and a lack of major market drivers.