Synopsis
Mumbai's stock market faced a sharp decline as analysts warn about the global reset prompted by US tariffs. Experts highlight the risks of recession and inflation, with major markets experiencing significant drops.Key Takeaways
- World is undergoing a reset since WWII.
- US tariffs are causing global market turmoil.
- China's retaliation has impacted Indian stocks.
- Trade war raises recession and inflation risks.
- Oil prices are falling amid global uncertainties.
Mumbai, April 7 (NationPress) Despite a significant dip in the Indian stock market on Monday, financial analysts indicated that investors should monitor the retaliatory actions by the European Union (EU) and other nations in response to the US reciprocal tariffs.
Economist Pankaj Jaiswal shared with IANS, "the world is currently undergoing a reset for the first time since World War II, leading to a substantial drop in stock markets worldwide, including India."
"The trade war poses risks of recession and inflation globally, with the US being the most impacted," he remarked.
Market analyst Sunil Shah mentioned to IANS that the approximately 4 percent decline in the Indian stock market can be traced back to a 34 percent tariff imposed by China in retaliation to the US tariffs.
Shah stated, "Investors recognize that no nation will benefit from the US tariffs, which fundamentally explains why major stock markets across the globe plummeted today."
A sell-off was observed across most Asian markets, including Tokyo, Shanghai, Bangkok, Seoul, and Hang Seng, with declines reaching up to 11 percent.
The US markets experienced a dramatic sell-off on Friday due to reciprocal tariffs, with the Dow closing down by 5.50 percent and the tech index Nasdaq falling by nearly 5.82 percent.
Meanwhile, the Indian stock markets continued their downward trend for the third consecutive session on Monday, driven by global sell-offs amid escalating trade war concerns.
This downward trend is largely attributed to the reciprocal tariffs imposed by President Donald Trump, which have heightened the risk of a global trade war.
Oil prices have seen a sharp decline due to global uncertainties, particularly following Saudi Arabia's announcement of its most significant price cut in years. Brent crude dropped by 2.67 percent to $63.82 per barrel, while West Texas Intermediate fell by 2.69 percent to $60.31.
