Stock Market Review: What will be the impact of reduction in US tariff on Indian market, these stocks will be kept in mind
Mumbai. After the rise in domestic stock markets last week, the rise is expected to continue next week also due to the reduction in import duty by the Trump administration in America. In its decision, the US Supreme Court last year canceled the administrative orders imposing high import duties on various countries by President Donald Trump. After this, on February 20, the Trump administration had announced to impose a uniform 10 percent import duty on all countries for 150 days. In the order issued for this, it has been said that this rate will be applicable from February 24.
Trump said on social media on February 21 that the 10 percent rate has been increased to 15 percent, although no formal order has been issued yet. Given that in the interim trade agreement with India, the US has made a provision to impose import duty at the rate of 18 percent, further reduction in rates may keep investors in the market as buyers.
Last week, BSE Sensex rose by 187.95 points (0.23 percent) to 25,571.25 points with a weekly gain of 100.15 points or 0.39 percent to reach 25,571.25 points. There was a decline in the indices of medium and small companies. The Nifty Midcap-50 index slipped 0.28 percent and the Smallcap-100 index slipped 0.18 percent during the week.
Auto, IT and media groups witnessed weekly decline while indices of banking, FMCG, pharma, health, metal and oil & gas groups remained in the green. Especially there was tremendous growth in public banks. Among Sensex companies, L&T shares rose the most by 4.97 percent during the week.
ITC gained 4.27 percent, Power Grid gained four percent, NTPC gained 2.78 percent, Asian Paints gained 2.71 percent, Axis Bank gained 2.58 percent and Tata Steel gained 2.49 percent. Shares of Bajaj Finserv were up by 1.67 percent, Sun Pharma by 1.55, State Bank of India by 1.45, BEL by 1.32 and Titan by 1.30 percent. Shares of HDFC Bank, Bajaj Finance and Hindustan Unilever were also in gain.
The biggest decline was 5.70 percent in Eternal. Tech Mahindra shares fell 5.09 per cent, Trent 3.82, Mahindra & Mahindra 3.42, Maruti Suzuki 1.58, Indigo and UltraTech Cement both 1.54, ICICI Bank 1.47, Bharti Airtel 1.34, HCL Technologies 1.23 and Infosys 1.22 per cent. Adani Ports and TCS also suffered weekly losses.
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