Trump 500% Tariff News: Indian stock markets witnessed weakness for the fourth consecutive day on Thursday, January 8. During trading, Sensex fell by more than 700 points, while the Nifty slipped below 25,900. Continuous selling by foreign investors, weak global cues, and uncertainty surrounding the India-US trade agreement put pressure on the market. Gold and silver prices also saw a decline.
At around 12:10 PM, BSE Sensex was trading down 713 points at 84,247. The Nifty was down approximately 251 points at 25,889. Mid-cap and small-cap stocks also registered a decline of more than 1 percent. All sectoral indices were in the red, with metal and oil and gas stocks showing the biggest losses.
Stock Market Crash Today: Major Reasons for the Stock Market Decline
1. US Warning of 500% Tariffs
US President Donald Trump has supported a bill that proposes imposing tariffs of up to 500 percent on countries trading with Russia (Trump 500% Tariff News). This is expected to impact India and China. Following this news, sharp selling was observed in export-oriented companies, especially textile and seafood companies.
2. Continuous Selling by Foreign Investors
The stock market is under the most pressure due to selling by foreign investors. On Wednesday, foreign investors sold shares worth approximately ₹1,527 crore. So far in January, they have sold shares worth around ₹4,650 crore.
3. Weak Global Cues
The Indian market did not receive any support from global markets. Asian markets, including Japan’s Nikkei and Hong Kong’s Hang Seng index, were down. US markets also closed lower, affecting investor sentiment.
4. Uncertainty over India-US Trade Agreement
Investors appeared cautious due to the delay in the proposed trade deal between India and the US. Trump has warned India of additional tariffs for buying oil from Russia. Tariffs of up to 50 percent have already been imposed on several Indian products, impacting trade relations.
5. Rise in Crude Oil Prices
In the international market, the price of Brent crude rose by 0.4 percent to around $60 per barrel. India imports most of its oil requirements, so rising oil prices increase concerns about inflation and the current account deficit.
6. Weekly Expiry of Sensex Derivatives
Thursday marked the weekly expiry of Sensex derivatives. This led to traders cutting and rolling over their positions, increasing both volatility and volume in the market. Market Experts’ Opinion
According to Devarsh Vakil, Head of Research at HDFC Securities, the market is currently showing some weakness, but the overall trend remains positive. Higher highs and higher lows are being formed on the daily chart. For the Nifty, the 26,373 level is considered resistance, while the 26,000 level is considered strong support.
Gold Silver Price Crash: Gold and silver prices also fall sharply
Along with the stock market, gold and silver prices also saw a sharp decline today. Silver prices fell by nearly ₹9,000 once again, while gold also became ₹1,000 cheaper. On MCX, the price of silver for the March 5 futures contract was trading at around ₹2.41 lakh per kg. Meanwhile, the price of 10 grams of gold for the February 5 futures contract reached approximately ₹1.37 lakh.
Gold price Down: How much cheaper have silver and gold become in two days?
Silver, which recently reached record highs, has fallen by about ₹18,000 in two days. Gold prices have also fallen by ₹1,600 to ₹1,800.
Silver Price Down: Why are gold and silver prices falling?
Impact of Profit Booking
After reaching record highs, investors started booking profits, which put pressure on gold and silver prices.
Trade Deal and Tariff Fears
The delay in the India-US trade deal and Trump’s threat of a 500% tariff have strengthened the dollar, negatively impacting gold and silver.
Gold-Silver ETFs also decline
The decline in prices has also affected gold and silver ETFs. Silver ETFs have fallen by 5 to 6 percent, while gold ETFs have also seen a decline of about 1 percent.
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