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So, before we get into the assessment, I would just like to highlight what really happened. So, there was a premium arbitrage between COMEX and London, wherein market participants sold the COMEX futures and bought the London physical and to mature the COMEX future part, the London physical stocks were brought into the COMEX inventories.
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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.
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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.
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