The global market witnessed a sharp correction this week, with benchmark indices plummeting over 3% due to widespread selling. Deepening trade war worries and fears of a slowing US economy triggered the sell-off, particularly in IT, auto, and US market-focused shares.
US President Donald Trump confirmed the implementation of a 25% tariff on imports from Canada and Mexico, as well as an additional 10% tariff on Chinese goods, sending shockwaves through global markets. The move led to a significant decline in Indian stock markets, with SENSEX plummeting by 857 points to close below 74,000.
The sell-off was not limited to India; other major indices also suffered. The Dow Jones rose marginally, while the Nasdaq Composite fell by 5.26%. Benchmark NIFTY registered its worst monthly run in 29 years, extending losses to a fifth straight month.
However, some stocks managed to buck the trend. Shriram Finance, HDFC Bank, and Bajaj Finance gained ground after the RBI lowered risk weights for bank finance to non-banking finance companies and microfinance loans. Thangamayil Jewellery shares soared 20% as the company announced its entry into a new market.
The decline in commodity prices also had an impact on the markets. Gold fell by 1.97%, while silver declined by 3.7%. The US Dollar Index rose by 0.66%, and the GBP fell by 0.19%.
As the trade tensions continue to escalate, investors remain cautious, with many watching the market for any signs of a reversal. Despite this, some stocks have shown resilience, suggesting that there may be opportunities for investors looking to take advantage of the current market conditions.
Source: https://upstox.com/news/market-news/trading/stock-market-weekly-recap-benchmarks-tank-3-nifty-logs-worst-run-since-1996/article-149292