The stock market slipped as soon as it opens, Sensex breaks 111 points, Nifty also declines, know details
The Indian stock market started on Friday with weakness. Both Sensex and Nifty open the major index with a decline in early trade. There are two major reasons behind this decline-25% tariff imposed on India by America and frequent selling of foreign institutional investors (FIIs). According to PTI news, the Sensex fell 111.17 points to 81,074.41 and the Nifty slipped 33.45 points to 24,734.90.
America’s 25% tariff: Effect on India
Under the new executive order issued by US President Donald Trump, an export of up to 25 percent will be imposed on exports of about 70 countries including India. This decision can affect many sectors of India. However, there is no clarity in the order regarding the potential “penalty” on military equipment and energy purchase from Russia. In addition, on Thursday, foreign institutional investors sold equity worth ₹ 5,588.91 crore, which puts heavy pressure on the domestic market. V.K. of Geojit Investments According to Vijaykumar, since the new tariff will be effective from August 7, countries have a chance to get relief through dialogue. The market is currently considering this tariff as short -lived.
Look at the performance of major companies
Sun Pharma shares declined by more than 5%, as the company’s Q1 net profit declined by 20% to ₹ 2,279 crore. Other fall shares include Mahindra & Mahindra, Tata Steel, Tata Motors, Infosys, Larsen & Toubro. In addition, firm shares included Hindustan Unilever, ITC, Asian Paints, Maruti Suzuki.
Global signal also weak
Asia’s major stock markets-Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hangseng-also saw a decline. The price of Brent crude also fell 0.97% to $ 72.53 per barrel. The Sensex fell 296.28 points to close at 81,185.58 in the previous trading session (Thursday), while the Nifty fell 86.70 points to close at 24,768.35.
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