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Trade War Fears Sink Markets: Sensex, Nifty Drop Sharply
19 Jan
Summary
- Indian stock indices fell significantly due to global economic uncertainty.
- US tariff threats on European nations sparked fears of a trade conflict.
- Weak Chinese economic data and foreign investor selling added pressure.
Equity benchmark indices traded in the red on Monday, reflecting global market anxieties. The Sensex plummeted by 523.11 points to 83,047.24, while the Nifty saw a decline of 166.75 points, closing at 25,527.60. Market experts attribute the current market environment to poor global risk sentiment and a lack of positive catalysts.
The primary driver for the weak start was the "Tariff Tantrums," impacting global risk appetite. Continued selling by Foreign Portfolio Investors (FPIs) and mixed corporate earnings further pressured domestic equities. President Donald Trump's threat to impose tariffs on eight European countries over Greenland raised concerns about a potential trade conflict.
Global developments exacerbated the cautious investor sentiment. Weak Q4 GDP growth in China contributed to a downturn across Asian markets, with Japan's Nikkei and MSCI's Asia-Pacific index falling. US futures also declined as investors reacted to the tariff threats, while safe-haven assets like gold and silver surged.
