There is an outcry in the US Stock Market. Nasdaq fell nearly 6 per cent in the US market on Thursday night, while the Dow Jones index saw a decline of 1600 points or about 4 per cent. S&P 500 also declined by about 5 percent. Earlier, such a big decline in a day came on 16 March 2020.
After the outcry in America, there has been a big decline in the Indian market. But RIL shares have broken more than 4 percent. Global Empat is being considered as the major reason for the breakdown of Reliance Industries shares. Where the risk of recession has increased.
On April 4, there was a tremendous selling in the Indian stock markets. Sensex fell at 930 points or 1.22 per cent to 75,364 a day. NIFTY 50 also broke at 345 points or 1.49% to 22,904. There are 4 major reasons for this decline.
Apart from tariffs, these reasons for increasing the fear of recession?
Fear of Global Trade War: After Trump’s new tariff, China and Canada have also threatened to take retaliation. Investors are nervous by this. The US has imposed 26% import duty on Indian goods and 10% on other countries. In response, Canada has implemented 25% tariffs on American vehicles. This has increased the crisis of Global Trade War.
Global market declines: The S&P 500 index in the US dropped 5% and NASDAQ 5.5%, which is the biggest decline after 2020. Asian markets are also broken. Japan’s Nikkei was 3%, South Korea’s Kospi was 2% below.
Sectoral pressure: Heavy pressure is being seen in pharma stocks, IT shares and auto stocks. Reliance’s shares are also getting tremendous selling. Nifty IT index dropped 2%, coforge and Persistent Systems were the biggest loser. Metal stocks were selling.
Possibility of increasing inflation: America The biggest residence of increasing recession is inflation. Many experts estimate that inflation in America is going to grow rapidly, because the same coming from other countries will now be available at a higher price. This will increase inflation. At the same time, the dollar index is also seen to decline, which is not a good sign for the American economy.
Is the risk of recession increasing?
After the tariff of Trump, the possibility of inflation in the global market has increased, due to which the recession of recession is seen increasing. Senior economist Brett Ryan, a Deutche Bank, told the news agency Reuters that Trump’s tariff may reduce the US growth rate by 1-1.5 percent this year, which can increase the risk of recession. However, there is no such crisis in India right now. Good signs are visible for the economy of India.