Trump’s tariff rhetoric upsets investors
The Indian stock market witnessed a sharp fall on Monday as the benchmark indices faced heavy selling pressure amid weak global cues, uncertainty over US trade policies and sustained foreign fund outflows
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Mumbai: The Indian stock market witnessed a sharp fall on Monday as the benchmark indices faced heavy selling pressure amid weak global cues, uncertainty over US trade policies and sustained foreign fund outflows. One of the main factors contributing to the fall was the announcement by US President Donald Trump of a 25 per cent tariff on all Colombian goods entering the country. This move, made in response to Colombia’s decision to block US military deportation flights, has raised fears of a potential escalation in global tariff wars. Adding to the cautious sentiment is the upcoming Federal Open Market Committee (FOMC) meeting scheduled for January 28-29.
While analysts predict that the Federal Reserve will likely maintain interest rates in this meeting, speculation about possible rate cuts in March is growing amid concerns over Trump’s economic policies, including extended tax cuts and tariffs.
Foreign fund outflows and muted third-quarter earnings from Indian companies have further dented investor confidence. Additionally, concerns over Chinese DeepSeek’s cost-efficient AI model disrupting the business of tech giants like Nvidia and Google added to the uncertainty.
Global markets provided little support, with US stock futures trading lower during Asian trading hours. The S&P-500 futures dropped by 1 per cent, and Nasdaq 100 futures fell by 1.9per cent.
