On April 2, the US has banned its reciperook tariff on many countries around the world, after which there has been a stir in many countries of the world. But after that again President Donald Trump took a U-turn. He banned tariffs for 90 days from 70 countries of the country including India, after Trump’s decision, the Sensex rose by 1.77 percent to close at 75,157.26 points on Friday, on the last business day of the Indian market. At the same time, the Nifty closed at 22,828.55 with a gain of 429.40 points or 1.92%. But after that the market is closed for three days. Let us tell you which factor will affect the Indian market on Tuesday. How will the market be
America and China tariff war
Trump’s government has imposed 145% tariff on Chinese goods coming in America, that is, Chinese goods will now become very expensive. In response, China has retaliated by putting 125% tariff on American goods. This can make trade between the two countries expensive and difficult, which affects the market of the whole world. But, Trump has given 90 days discount on tariffs for more than 70 countries, that is, some countries will get relief now. This will also keep an eye on the Indian market, because these tariffs can affect global supply chains and prices.
American market
The Indian stock market often follows the American market. Last Friday, the US market rose well. Dow 30 index, which tracks large businesses, rose 619.05 points (1.56%) to close at 40,212.70. S&P 500, including 500 large companies, climbed 95.31 points (1.81%) to 5,363.36. Nasdaq, which is the index of tech companies, jumped 337.14 points (2.06%) to close at 16,724.50. This boom is a positive signal for the Indian market, because when the American market grows, the trust of investors increases and Indian shares can also climb.
FII and Dii
The direction of the market is largely fixed by foreign institutional investors (FIIs) and domestic institutional investors (DII). FIIs are foreign funds that invest money in the Indian market, such as foreign bank or investment firm. On Friday, FII sold shares worth 2,519.03 crore, that is, he withdrew money from the market. On the other hand, DII bought shares worth Rs 3,759.27 crore. The purchase of DII provides support to the market, but FII’s selling can put pressure. If FII starts purchasing, then the market may grow up.
Rupee and dollar
The price of rupee is also important for the market. The rupee closed at 86.04 against 1 dollar on Friday, which was 64 paise more than Wednesday. But the rupee weakened 0.9% throughout the week, that is, its value fell. This was the worst week in two months. The rupee was strong at 84.97 in the first week, but now there is a decline. Import can be expensive due to the weakening of the rupee. Such as oil and electronics, which affects the market. But this will make Indian exports cheaper, which will benefit Indian companies.
Companies’ decisions
The week is small due to the holidays, but many companies are bringing reports that can shake the price of their shares. A total of 13 shares will have changes like dividend, stock division, rights issue, spin-off and solution.