Mumbai: The BSE Sensex has fallen more than 1,500 points in 5 trading sessions as investors turn cautious as Q3 earnings and clarity regarding the Indo-US trade deal are expected to be addressed in the coming days.
Though markets correct all the time, the scale and speed of this decline have mattered as this is not about a single development but a multitude of uncertainties that have heightened worries of investors, including FIIs.
Trump’s arbitrariness: The biggest threat
Markets have been spooked by Donald Trump’s decision to approve the ‘Sanctions on Russia Act, 2025’, which will increase the tariffs on India to 500% if India doesn’t stop purchasing Russian Oil. This remains a threat for now, as this Act will need to be ratified by the US Congress, and the US Supreme Court is concurrently hearing a case questioning the legality of Trump’s tariffs. Further clarity on these developments is expected shortly.
Meanwhile, newly sworn-in US Ambassador Sergio Gor acknowledged the challenges in addressing concerns about the long-pending Indo-US trade deal.
“India is the world’s largest nation. So it’s not an easy task to get this across the finish line, but we are determined to get there and while trade is very important for our relationship, we will continue to work closely together on other very important areas such as security, counter-terrorism, energy, technology, education, and health,” he told ANI as negotiations continue.
Besides this, the markets are also closely watching the developments in Venezuela, as a new government replaces Nicolas Maduro. Trump’s promise to run the country until a new US-friendly administration takes over has given hope to the markets, as the country’s oil is expected to offer an alternative to Russian and Middle Eastern oil.
Q3 results awaited
Many leading blue-chip companies, including HCL Tech, TCS, Infibeam Avenues and others, are expected to release their Q3 results, with investors looking forward to their results. Some of these companies are expected to have mixed results or to report disappointing financials, as per analysts’ estimations.
Depending on the news developments, there could be sharp rises or falls, mostly due to global cues. The markets have shown that they don’t move in straight lines, and the markets could go through uncomfortable phases. The ‘wait and watch’ stand may get clearer in the following days.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
