New Delhi- In an unexpected development, the Indian share market has responded well in spite of recent tariff threats by U.S. President Donald Trump. Trump, while giving a speech, targeted India, declaring that India charges 100% tariffs, referring to it as unfair. Nevertheless, his remarks have not impacted the Indian market, which has opened on a firm note today, with the Sensex increasing more than 500 points.
Trump’s comments, as part of his overall criticism of trade imbalances across the world, specifically targeting the tariffs charged by various nations, including India. Even as the markets in the world showed signs of anxiety after his announcement, the Indian market went against expectations. While stock exchanges across the world, including those in the U.S. and Asia, saw declines with growing concerns of a global trade war, the Indian bourses didn’t bat an eyelid.
The Sensex’s sudden 500-point hike indicates investor faith in India’s economic resilience, and the indication is that the traders were not unduly worried by Trump’s utterances. Analysts are of the view that the domestic market has already discounted external trade tensions and that the Indian economy is robust enough to survive such tempests.
Trump’s repeated references to India were probably designed to put pressure on nations with large tariffs to be willing to open up their markets. The effect of such words on India’s economy might be minimized, however, considering the nation’s balanced trade relationships and stable domestic growth, experts say.
While the global markets are still volatile, the Indian stock market continues to reflect its strength, indicating that investor sentiment is not influenced by global rhetoric. This is a sharp deviation from the global trends, where the specter of a possible trade war continues to haunt investor confidence.
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