Indian stocks, bonds, currency shows resilience amid Trump's tariff reinforcement

Copyright © HT Digital Streams Limit all rights reserved. Markets on Thursday dropped Nifty 50 and S&P BSE Sensex 1% in pre-open trade. However, Nifty 50 and Sensex later hampered some losses, which ended the day’s trade 0.35% and 0.42% respectively. Summary Nifty and Sensex Trim early losses, effects are gradually and currency strengthened on the day that Trump’s widespread rates cause global unrest Mumbai: Indian stocks, tires and currency showed some resilience, even though US President Donald Trump’s reciprocal rates have shipped worldwide market. Trump has gained global trading tensions by announcing a 10% tariff of 10% on all imports from April 5, with additional reciprocal rates on specific countries from April 9. India will be hit by a rate of 27%, while China’s rate rises to 54%, higher than the previous 20%. Gift Nifty Futures scored a hit earlier this morning and dropped almost 2%, while Indian benchmarks Nifty 50 and S&P BSE Sensex fell by 1% in pre-open trade. However, Nifty 50 and Sensex later hampered some losses, which ended the day’s trade 0.35% and 0.42% respectively. According to preliminary data of BSE, Fiis only sold Indian shares worth £ 2,806 crore, but this just bought £ 221.47 crore on Thursday. In comparison, the Nikkei 225 of Japan was 2.77%lower, Hong Kong’s Hang Seng ended 1.52%lower, and the Kospi of South Korea was down 0.76%. Market keepers said it was possible that the impact of rates had already been priced, which led to a softer reaction in Indian stocks compared to global indices. Read also | Trump’s Rate outburst: Asian markets rattle, India is doing better “Not a major change for India, prima facie, because it does not harm our relative benefit in trade compared to countries such as Bangladesh, Vietnam, etc., where higher rates are clapped and where we can now compete more effectively in traditional sectors such as garments and jewelry,” says Devina Maa. founder and chair person, first. However, others said that global uncertainties, including a possible slowdown in the US, could mean continued volatility in the Indian markets, despite the resilience. According to Sankaran Naren, chief investment officer at ICICI Prudential Asset Management Company Ltd, the US economy, a major driving for global growth, will see a slowdown due to tariffs and broader economic problems. Bonds Indian bond yields have hardened on Thursday slightly to 6.5% about concerns that inflation in the US will limit the Chamber of Financial Relief for the US Federal Reserve. Experts said the return on the Indian Paper of Ten Year Widers on the back of the Reserve Bank of India (RBI) on Wednesday to submit liquidity via the open market operations. Read also | India has a reconsideration of green effects. And a new strategy. “For effects, the prospects are favorable,” says Kanika Pasricha, chief economic adviser, Union Bank of India. “Even though RBI has not done a £ 80,000 crore OMO, if it is assumed that there is no FPI outflow, the liquidity of the system in the coming months will generally remain in a surplus and comfortable.” Pasricha said RBI could pay a dividend of £ 2-2.5 trillion in May, which would support durable liquidity in the system and effects. “That’s why we expect a downward movement for yields.” Currency The domestic currency closed at 85.44 on Thursday against the dollar from 85.51 the previous day. According to experts, the rupee can continue through the rest of the year to trade with a little depreciation bias. “For a few reasons, I do not expect a sharp runaway reduction in the rupee. The real effective exchange rate (Reer) has already fallen, along with a decrease in retail inflation; there is also the adjustment in rupee we saw a few weeks ago,” said Dhiraj Nim, Economist at Anz Bank Group. Read also | Why RBI can again aggressively defend the rupee, said that the concern for the competitiveness of the currency was substantially relieved and remained stable, as long as inflation remains about 4%. “The acute tension experienced from stocks and the outflow of tires has relieved,” he said. “Many of the oversight issues about the stock markets have relieved and inflow has stabilized, if not resumed strongly.” The dollar index also weakened to the tariff announcements. The index keeps the performance of the dollar against six major global currencies. Abhishek Goenka, founder and CEO of Forex Advisory Service Provider IFA Global, said: “Goenka said the Delta of the Rouie is not 1: 1 with the dollar, especially on the reinforcing side, if it drastically reduces. This means that if the dollar does not weaken by 1%, Rupee can be. Read also | Trump’s rates were supposed to increase the dollar. The positive trend of the rupee, “he said. Tariff. “In addition, central banks worldwide are raising their golden reserves, which is an indication of a move away from the trust in the US dollar,” says Singh, adding that the growing preference for gold reflects the concerns about the geopolitical tension and economic volatility. Read also | Golden set for the best quarter since Chernobyl. Miners are doing better. Ram Sahgal in Mumbai contributed to this story. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #nifty 50 #nifty 50 Shares #Sensex #Bse Sensex #Stock Market #Gold ETF #Currency Mint Special