On Sunday, President Donald Trump announced a 25% tariff on goods from Canada and Mexico, and an additional 10% on Chinese products. This move will take effect next Thursday. In April, India and other countries will face alternative tariffs.
This announcement caused a significant dip in the US markets yesterday and further impacted the Asian markets today. India's hopes for a market rebound have now been dashed. India is making vigorous efforts to avoid the impact of alternative tariffs, especially on cars, alcoholic beverages, and chemicals. A reduction in tariffs on imports will have severe consequences for several Indian industries.
India's GDP data for the third quarter is set to be released this evening, with growth expectations of 6.2% to 6.4%.
The derivative market’s Nifty Gift closed at 22,560 on Thursday, and it stood at 22,535 this morning. This indicates that the Indian market is likely to open with a significant loss today.
European markets closed with substantial losses on Thursday. Trump's announcement of a 25% tariff on European cars caused automobile company stocks to drop by 4%. Ferrari's shares fell by 8%, largely due to the sale of shares by the founding Angelli family in the parent company. In contrast, Rolls-Royce saw a 16% increase after raising its revenue expectations.
The US market experienced a steep decline yesterday. Trump's announcement that the 25% tariff on Mexico and Canada would be implemented next Thursday was the main factor behind the plunge.
Although the tariff was initially delayed allowing for discussions until February, Trump stated that the tariff would be imposed due to the continued issues of drug smuggling via the borders.
On top of the existing tariff on Chinese products, an additional 10% tariff will be applied next Thursday. Trump clarified in a Truth Social post that no changes would be made to the alternative tariff which will be implemented for all countries on April 2.
The 25% tariff on steel and aluminium imports will come into effect on March 12. This could potentially result in a surge in prices, slowing down economic growth.
NVIDIA’s fourth-quarter results were slightly better than expected, but its stock still dropped by 8%. The company had previously shown substantial growth, but the current growth rate is lower. As a result, the company’s market value fell below three trillion dollars. Only Apple remains in the three trillion-dollar club. With a market value of 2.94 trillion dollars, NVIDIA is more valuable than Microsoft.
On Thursday, the Dow Jones index closed 193.62 points (0.45%) lower at 43,239.50. The S&P 500 index lost 94.49 points (1.59%) to close at 5,861.57. The Nasdaq Composite dropped by 530.84 points (2.78%) to close at 18,544.40.
This morning, US futures are showing mixed signals. The Dow Jones is up by 0.04%, the S&P 500 by 0.04%, and the Nasdaq by 0.09%.
Asian markets opened sharply lower this morning. Countries in Asia are concerned that the trade war is rapidly escalating. In Japan, the market fell by 3%, and Hong Kong stocks, which had surged the previous day, fell by 2%.
The Indian market failed to recover once again. On the settlement day for February series contracts, the market closed marginally lower, marking the end of five consecutive months of losses. This is a first in the 29-year history of the market.
Banks and financial stocks helped mitigate some of the downturns. The Reserve Bank of India significantly reduced the Non-Banking Financial Company (NBFC) loan-to-value ratio, which will free up Rs 40,000 crore in capital for banks and other entities, enabling them to lend an additional Rs 4 lakh crore.
However, sectors like Realty, Media, Auto, FMCG, IT, and Consumer Durables saw significant declines. Ultratech Cement's decision to expand into the electric cable and wire manufacturing sector caused leading companies in the sector to fall by up to 22%. Companies like Polycab and KEI Industries saw major declines.
The Nifty closed 2.50 points (0.01%) lower at 22,545.05. The Sensex ended 10.31 points (0.01%) higher at 74,612.43. The Bank Nifty rose by 135.45 points (0.28%) to end at 48,743.80. The Mid Cap index fell by 1.14% (565.40 points) to 49,136.75, and the Small Cap index dropped by 1.64% (252 points) to close at 15,156.60.
On Thursday, Foreign Institutional Investors (FII) sold Rs 556.56 crore in the cash market, while domestic funds and financial institutions bought Rs 1,727.11 crore worth of equities.
The market sentiment remains bearish, with Nifty showing an oversold condition for the third consecutive day. However, there was no pullback rally in line with this condition. Nifty is expected to find support at 22,515 and 22,450 levels today, while resistance is likely at 22,600 and 22,660.
Sanofi India's revenue grew by 9.7%, and its profit rose by 31%.
KSB’s revenue grew by 20.5%, and its profit surged by 33.2%.
Tata Power secured a Rs 632 crore contract from Solar Energy Corporation of India.
Trans Rail Lighting won a Rs 2,752 crore contract for the electricity distribution chain.
LIC received a GST department tax demand of Rs 480 crore.
As the trade war intensifies, the gold market continues to see large fluctuations. The strengthening of the dollar, rising interest rates, and slowing growth are causing gold prices to fluctuate. However, historically, despite all uncertainties, gold has usually seen price increases. Gold experienced a 1.35% loss yesterday and closed lower for the third consecutive week.
On Thursday, international gold prices dropped by $39.40 to $2,877.60 per ounce. This morning, the price fell further to $2,874 per ounce.
In Kerala, the price of gold dropped by Rs 320 to Rs 64,080 per 10 grams on Thursday. The price is expected to fall further, though a decline in the rupee may reduce the impact of the international drop.
Silver prices also fell by $31.24 to $2,874.60 per ounce.
The price of crude oil saw significant changes yesterday. The price surged by more than 2% after US President Trump revoked the license granted to Chevron for oil extraction in Venezuela.
Additionally, the 10% US tariff on Canadian products will also apply to crude oil, which led to a further price increase. There are also expectations that if a peace agreement is reached in Ukraine, more Russian oil will enter the market.
On Thursday, Brent crude closed at $73.80, and by this morning, it had risen to $74.04. WTI crude was priced at $70.09, and UAE’s Murban crude increased to $76.70.
Cryptocurrencies remain in a downward trend. Bitcoin rose by 1% today to $84,600, but it still remained below $84,000. Ethereum's price was close to $2,300.
Most industrial metals experienced declines on Thursday. Copper fell by 0.71%, reaching $9,381.31 per ton. Aluminium decreased by 0.14%, priced at $2,628.85. Tin saw a significant drop of 3.63%, and lead fell by 0.16%. However, nickel rose by 1.77%, and zinc increased by 0.28%.
This summary provides a clear picture of how crude oil, cryptocurrencies, and industrial metals are being affected by global developments, such as political shifts and market conditions.
Sensex 30: 74,612.43 (+0.01%)
Nifty 50: 22,545.05 (-0.01%)
Bank Nifty: 48,743.80 (+0.28%)
Mid Cap 100: 49,136.75 (-1.14%)
Small Cap 100: 15,156.60 (-1.64%)
Dow Jones: 43,239.50 (-0.45%)
S&P 500: 5,861.57 (-1.59%)
Nasdaq: 18,544.40 (-2.78%)
Dollar ($): ₹87.20 (-₹0.01)
Dollar Index: 107.24 (+0.82)
Gold (per ounce): $2,877.60 (-$39.40)
Gold (per 10 grams): ₹64,080 (-₹320)
Crude (Brent): $73.80 (+$0.78)
