Share Market Today / Tariff war again created chaos in the stock market, huge drop in Sensex

Share Market Today: The tariff war that flared up again between the US and China has brought a storm in the global markets. While investors in India are eyeing the upcoming monetary policy of the Reserve Bank of India (RBI), the tariff hike of up to 104% on goods imported from China by the US has stirred up the world economy.

Trump's big move and China's response

US President Donald Trump had already imposed tariffs on China, in response to which China imposed a 34% tariff on the US. The Trump administration had warned to remove these tariffs by April 8, which China ignored. After this, the US announced a heavy tariff of up to 104% on products imported from China, which has once again brought tensions in the trade world to a peak.

Direct impact on Indian markets

The echo of this tariff war was also heard in the Indian stock market. On Wednesday, the market opened in the red zone on the third day of the trading week. The BSE Sensex opened with a decline of 409 points at 73,817.30, while the NSE Nifty fell 0.34% to 22,460.30. Shares of many sectors including the pharma sector saw a decline.

RBI's role is important

The market is now eyeing the monetary policy decision of the Reserve Bank of India. Investors hope that interest rates can be cut by 0.25%, but if this cut reaches 0.5%, it could be a positive sign for the market, which is currently facing international pressures.

Crisis deepens in the pharma sector

After Donald Trump's indication of increasing tariffs on pharmaceutical products, the concern of Indian pharma companies has increased. Till now these companies were exempted in the US market under the Reciprocal Tariff Policy, but the possibility of expanding the scope of this policy has put pressure on the stocks.

Affected companies:

• Sun Pharma
• Lupin
• Dr. Reddy’s
• Aurobindo Pharma
• Gland Pharma

These companies derive huge revenue from the US market, and any tariff change has a direct impact on them.

US stock market also under pressure

The impact of tariff tension is also clearly visible on America's own market. The US market declined for the fourth consecutive day on Tuesday. The S&P 500 index closed at 4,982.77, falling below 5,000 for the first time in the last year. The Dow Jones Industrial Average also closed down 320 points at 37,645.59. The S&P is now 18.9% below its record high, indicating a recession.