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Nifty Closes Below the Level of 10,000 After US Announced Tariffs on Chinese Goods
In a retaliatory move, China has also announced plans on Friday to impose tariffs on up to $3 billion of US imports.
Nifty, the benchmark index of top 50 stocks, has dipped on Friday below the crucial level of 10,000 for the first time since October 12, 2017 after US President Donald Trump announced tariffs on Chinese goods fearing the start of global trade war. Sensex, the benchmark index of top 30 stocks, closed at 32,596.54 down by 409 points while the Nifty closed at 9998.05 down by 116.70 points.
On Thursday Trump instructed to impose tariffs on at least $60 billion in Chinese imports. Experts say the US measures could lead to a global trade war that could badly affect global economy. The tariff imposed has been in addition to metals duties that were earlier imposed on China and other countries by the US. In a retaliatory move, China has also announced plans on Friday to impose tariffs on up to $3 billion of US imports.
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Siddhartha Khemka,VP – Head of Research (Retail), Motilal Oswal Financial Services, says, Indian equity markets reacted negatively today, in-line with global markets. With US imposing fresh tariff targeted China, there is an increasing fear of a trade war which could impact economic growth. Markets are expected to remain volatile ahead of F&O expiry next week, as well as end of Indian financial year (last week before the LTCG tax kicks in). While traders should remain cautious, decline in good fundamental stocks would offer buying opportunities for long term investors.”
Market sentiments have been negative for some time now as crude oil prices also jumped on 21 March 2018. Anand Shah, Deputy CEO & Head of Investments – BNP Paribas Mutual Fund , says, “Spike in oil prices raises India’s import bill and puts added pressure on an already widening trade deficit. Additionally, European and Asian bourses declined after the US Federal Reserve raised interest rates by 25 basis points, for the first time this year and signalled that it still expects to deliver two more before the end of the year.”
On Thursday, The Sensex stood at 33,006, down by 129.91 points, while the broader Nifty50 ended at 10,114, down by 40 points.