Trump's tariff attack and foreign investors selling…
The downtrend in the indian stock market continues. After US President donald trump announced a 25 percent tariff on steel and aluminum imports, the indian stock market saw a huge decline on tuesday afternoon. At 1:41 pm, the Sensex was down 1.25 percent with a fall of 1,038 points, while the Nifty fell 1.3 percent with a fall of 327 points. Mid and small-cap stocks fell by up to 3.5 percent.
Effect of tariff seen
Donald trump has increased the tariff on aluminum from 10 percent to 25 percent, which will come into effect from march 4. This tariff will apply to all steel and aluminum imports from the US, including major suppliers like canada and Mexico. The purpose of these tariffs is to prevent attempts by some countries, such as china and Russia, to avoid existing tariffs. trump claims that this will boost American production and create new employment opportunities.
How much impact on India?
India exports a very small amount of steel to the US, but the situation is different in the case of aluminum. india is a major aluminum producer in the world and the US is its biggest buyer. India's aluminum exports may be affected due to this tariff. industry experts say that indian companies, such as Vedanta and Hindalco, will find new markets over time, but until then they may have to suffer losses. The biggest thing is that this decision has come at a time when prime minister Narendra Modi is going to visit the US tomorrow i.e. on february 11.
Foreign investors' selling also has an impact
One of the major reasons for the fall in the indian stock market is also the selling of foreign investors. According to data from the National Securities Depository Limited (NSDL), FPIs sold shares worth more than Rs 78,000 crore in January. At the same time, till february 10, FPIs withdrew Rs 7,342 crore. In january 2025, foreign institutional investors (FIIs) sold in 22 out of 23 trading sessions. As a result, the indian stock market is falling continuously.
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