Global Markets Stirred as Trump’s Tariffs Shake Investor Confidence

Indian markets faced heavy selling on Thursday due to Trump’s tariff announcement, affecting indices like the BSE Sensex and NSE Nifty 50. Experts warn of economic impacts, emphasizing investor shifts to safer assets. Market turmoil could intensify if currency tensions between the U.S. and China escalate.

In a stark response to U.S. President Donald Trump's recent tariff announcement, Indian stock markets opened under significant selling pressure on Thursday. The BSE Sensex plunged over 800 points, marking a sharp decline of 1.05 percent, while the NSE Nifty 50 fell by 0.78 percent, reflecting a broader global downturn.

Experts assert that the abrupt market reaction stems from Trump's reciprocal tariff decision, prompting investors to move funds into safer assets such as gold. Ajay Bagga, a market expert, noted the likelihood of further pain, highlighting concerns over falling exports, margins, and a shift in emerging market portfolio flows toward safe havens.

Further tension is anticipated in U.S.-China currency relations; any potential devaluation by China could exacerbate market instability. Sectoral indices showed mixed outcomes, with Nifty Auto, IT, and Metals facing declines, while the pharma sector bucked the trend, registering gains. The pervasive negative sentiment was mirrored in declines across Asian markets.

(With inputs from agencies.)