Tarriffs: Fear of further huge decline in metal, realty and commodities
New Delhi| The biggest impact of the huge fall in the market due to US President Donald Trump’s tariffs has been on metal, realty, commodities and industrial sectors. Analysts estimate that if there is no consensus on tariffs, there may be further decline in these sectors. In such a situation, investors should invest in the market with caution.
The sectors that saw the biggest decline in the Indian market were metal, 6.22 per cent, realty, 5.69 per cent, commodities 4.68 per cent, industrial 4.57 per cent, auto 3.77 per cent and bankex 3.37 per cent. According to analysts, sectors like IT and metals have underperformed relative to the broader market, as slower growth is accompanied by higher inflation risks. This could result in a possible recession in the US.
Among the metal sector companies whose shares were most affected by tariffs, National Aluminum fell by 8.18 per cent, Tata Steel by 7.73 per cent, JSW Steel by 7.58 per cent, SAIL by 7.06 per cent and Jindal Steel by 6.90 per cent. In comparison, shares of the rest of the region declined less. The biggest decline occurred in these sectors because these sectors are going to be most affected by tariffs.
The market will keep an eye on these fronts this week
On the domestic front, on April 9, the meeting of the Monetary Policy Committee of RBI, i.e. MPC, will conclude. On 11 April, important economic indicators Index of Industrial Production (IIP) and retail inflation figures will be released. The quarterly earnings season will begin on April 10 with the outcome of TCS. In such a situation, their impact can also be seen on the market.
Capital decreased by 39 lakh crore in three months
The Indian equity market has seen a sharp decline so far this year. The total market capitalization of BSE has declined from Rs 442 lakh crore at the beginning of the year to Rs 403 lakh crore, which has declined by around Rs 39 lakh crore. During this period, there are 10 such companies in BSE 500 shares whose capital has decreased by more than Rs 50,000 crore. Among these, Wipro’s capital decreased by Rs 58,000 crore, Simens’s by Rs 57,000 crore, Mahindra & Mahindra’s by Rs 51,000 crore and Trent’s by Rs 55,000 crore.
TCS gave the highest loss this year
Company capital decreased
TCS 2.88 Lakh Crore
Infosys 1.78 lakh crore
HCL Tech 1.35 Lakh Crore
ITC 92,000 crore
LIC 63,000 crore
Bad times are over for the Indian economy
Goldman Sachs has said that the worst phase for the Indian economy is probably over. India has probably gone beyond its most challenging period of economic recession and decline in income. However, tariffs have raised serious concerns about India’s economic growth.
