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Stock market is considered a barometer of the economic and financial state of a country. Indian stock market performed very well until a year ago. Since then it started going down and later made its bottom and then went upwards as well. But it is facing problem because of various reasons. First is the pressure built by the tariff war of Donald Trump. Second is the fear of recession.
Trump has warned India that if the trade deal is not finalized, then he would impose tariffs on Indian imports. This is a strategy to pressurise the Indian leadership. India is agree to various terms including reducing taxes on imports from the US. But, Trump is demanding more. He wish India to cut tariffs on imports from the US dairy and agricultural products. This is the bone of contention. If India agree to these terms, then it will be devastating for the Indian farmers and dairy industry. Moreover, if India allows free access of American products in India, then other countries will also demand concessions for themselves which will be harmful for the Indian economy. So, it seems that the government won't agree to do it. It may derail the entire trade deal which stock market will not like. So, share market would go further down.
Up until this time, market is in wait and watch mood. It is hovering around a level of 25000 of Nifty fifty Index. Let's see what will happen before the end of this month as the next month is the time when tariffs will be imposed on India.
