Several factors are putting pressure on Indian markets, including global trade tensions, foreign investor activity, and post-Budget adjustments.
Global trade tensions after new US tariffs
One of the biggest reasons for the market decline is the fresh round of tariffs imposed by the US on Mexico, Canada, and China over the weekend.
- 25% tariffs on Mexican and Canadian imports
- 10% tariffs on Chinese goods
These measures have increased concerns about a possible trade war, leading to a decline in markets worldwide.
Aditya Gaggar, Director of Progressive Shares, said, “The markets were expected to be in the red after the US imposed new tariffs on key trading partners, sparking fears of a trade war. Even though India is not directly affected, the global impact is being felt in our markets as well. Investors are also reacting to sectoral changes from the Budget, while focus has now shifted to the upcoming MPC (Monetary Policy Committee) meeting.”