Global Trade Spat Shakes Investor Confidence: Indian Markets Respond

The Indian stock market has witnessed significant fluctuations since early April due to global trade tensions instigated by US tariffs. Despite a temporary ease, market sentiment remains cautious as ongoing tariffs and potential US-China trade conflicts add uncertainty. Experts foresee a rebound driven by corporate profits and foreign investments.

Global trade tensions have dramatically impacted investor confidence, with Indian markets experiencing notable turbulence since early April. The BSE Sensex plummeted nearly 2%, largely due to US President Donald Trump's announcement of widespread reciprocal tariffs.

Following Trump's tariff plan, the market capitalization of BSE-listed companies plunged by Rs 11.3 lakh crore. Contributing to this volatility, China responded with a 125% tariff hike on US goods in retaliation for America's increased levies. Nonetheless, a temporary 90-day suspension of some US-import duties provided momentary relief.

Despite prevailing uncertainties, experts anticipate an eventual market recovery buoyed by strong corporate earnings and foreign capital inflows once global conditions stabilize. Meanwhile, the ongoing US-China trade saga remains a critical factor in shaping India's economic outlook and investor sentiment.

(With inputs from agencies.)