Why is there doubt on the rise in the indian stock markets?
indian stock markets are witnessing a lot of volatility and uncertainty at the moment. The week-long movement of Sensex and Nifty has confused many market experts as well. Small and medium stocks have seen a significant decline even after six days. According to market experts, there are three main reasons behind this volatility in the stock market. So, let us know what are the factors due to which this volatility continues:
1- Concern about global tariff:
Actually, US President donald trump has hinted at imposing new tariffs on the automobile sector. This has given a big blow to the sentiments of investors. Earlier, President trump had indicated that all new tariffs would not be implemented from april 2. This had recently given some relief to the market.
The market was expecting that perhaps reciprocal tax would not be imposed on india from april 2. But, there is uncertainty about this till now. However, trade talks between the US and india are starting from march 26. In a report by news agency Reuters, a white house official clarified that President trump is sticking to his policy. This has created confusion among investors and they are avoiding new moves until there is clarity on the trade policy.
2- Profit booking after the boom
The stock markets witnessed the biggest boom in the last four years. This boom was seen on Monday. After which profit booking was seen by investors. Due to selling pressure, 11 out of 13 sectoral indices of NSE went into the red mark. Only Nifty, Private bank and IT sector were successful in keeping themselves in the green mark. Kotak Securities Equity Head Srikant Chauhan said that the market structure remains positive in the short term. But due to excessive buying, selling is happening at high levels
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