Over the weekend, leaders from major European economies agreed to increase defense spending, aiming to bolster the continent's ability to protect itself amid uncertainty over US NATO commitments.
US President Donald Trump has announced significant tariffs on Canada, China, and Mexico. Warren Buffett described the tariffs as an 'act of war'. In response, Canada and Mexico plan to impose counter-tariffs. Trump also increased tariffs on China, with Beijing threatening retaliation. The situation is likely to escalate trade tensions globally.
Ajay Srivastava, CEO of Dimensions Corporate Finance, emphasizes that market recovery hinges on FIIs halting their sales. He advises investors to hold on to good stocks despite the current downturn, suggesting the hospitality and pharma sectors show resilience, while real estate struggles. Regulatory changes and sensible taxation are crucial for market revival.
Swaminathan Aiyar warns that the US-China trade war and global uncertainty will impact India's GDP and world trade, leading to slower economic growth. He predicts a potential severe fall in equity markets and emphasizes that India's role in this geopolitical shift is minimal, suggesting India should observe and adjust as needed.
I feel that what happened in the budget also, so that will also help the auto companies going ahead. So, there is fear that duty cut will happen, there will be competition coming in from outside India, that may happen.
Trump's proposed 25% tariffs on goods from Canada and Mexico, along with a cumulative 20% levy on China, are set to take effect at 10:31 a.m. IST on Tuesday. The U.S. president also announced reciprocal tariffs starting April 2.
Despite more than half of Nifty stocks being in bearish phases, the index is only down 16% due to the weightage of few major stocks like RIL, HDFC Bank, and TCS. Factors contributing to the decline include stretched valuations, underwhelming earnings, and persistent foreign investor selling.
Ashish Gupta of Axis Mutual Fund sees investment potential in defence and PSU sectors despite market corrections. He finds defence valuations attractive but emphasizes the importance of order book to revenue conversion. Gupta prefers private banks over PSU banks due to stronger market positioning.
Wells Fargo has sold ITC shares worth Rs 106 crore through an open market transaction, influencing ITC's stock focus. Despite a drop in consolidated net profit for the December quarter, ITC's revenue from operations rose by 9.05% year-over-year.
