Share Market News / Trump's threat caused the market to crash, investors suffered huge losses

Share Market News: Indian stock market has seen a huge decline on the first day of the trading week. Both the Bombay Stock Exchange (BSE) Sensex and the National Stock Exchange (NSE) Nifty opened with a decline, causing huge losses to investors as soon as the market opened.

Effect of US policy

In fact, global markets were stirred after US President Donald Trump warned of imposing new taxes on many countries this week. This decision has increased the possibility of negative impact on business around the world, creating an atmosphere of concern among investors.

Fall in Sensex and Nifty

At around 10:24 am on Monday, the BSE Sensex was trading 561 points down at 77,299.00, while the Nifty index fell 176 points to 23,407.50. The biggest impact of this decline was seen on the shares of Tata Steel, Power Grid, NTPC, Bajaj Finance, Reliance Industries and HDFC Bank.

Other reasons for the decline in the market

Foreign capital outflow: Foreign investors are continuously withdrawing capital from the Indian market, which has increased the pressure on the market. On Friday, foreign institutional investors (FII) sold shares worth Rs 470.39 crore.

Negative trend of global markets: In Asian markets, Japan's Nikkei, South Korea's Kospi and Hong Kong's Hang Seng remained in the red, while China's Shanghai Composite remained in profit.

Weakness of US markets: On Friday, the US stock market also closed with weakness, which had a negative impact on the Indian market.

Fluctuation in crude oil prices: In the international market, the price of Brent crude rose 0.56% to $ 75.08 per barrel, raising concerns about inflation.

Fall in rupee

The Indian currency also appeared to be weakening. On Monday, the rupee fell 45 paise to a record low of 87.95 per dollar in early trade. The dollar index rose to 108 after the US announced a new 25% duty on steel and aluminum imports, putting further pressure on the rupee.

Fears of global trade war

The possibility of a global trade war has increased after Trump's decision. China has also imposed reciprocal tariffs, which has increased uncertainty in international trade. Indian investors are advised to remain cautious for now, as the market may see more volatility in the near future.