New Delhi, March 5 (HS): After facing weakness for 10 consecutive days, there was a tremendous boom in the domestic stock market today. It is believed that due to the indication of relief by the US in the tariff war, the strength of Asian markets, buying in the stocks of midcap and smallcap as well as blue chip companies, there was continuous enthusiasm in the domestic stock market today.
The biggest reason for the rise in the stock market today is believed to be the statement of US Commerce Secretary Howard William Lutnick, in which he has indicated that the tariff imposed on Canada and Mexico can be reduced somewhat in the coming days. Lutnick has said in his statement that the tariff can be balanced on the basis of some standards.
According to market experts, if the Trump administration gives relief in the tariff war, then it will increase the hope of reducing instability in global trade and the risk of investors will be reduced.
Prashant Dhami, Vice President of Dhami Securities, says that apart from Lutnick’s statement, the rise in Asian markets today also supported the domestic stock market. Today, most of the Asian markets traded in the green with gains. Similarly, today investors bought midcap and smallcap stocks as well as the shares of blue chip companies. Due to the fall in the market during the last few days, high quality largecap stocks have become comparatively cheaper, due to which investors continued to buy these stocks from the lower level today.
Similarly, Ravi Chander Khurana, CEO of Khurana Securities and Financial Services, says that Indian exporters are expected to benefit from the tariff war started by the US. The US has imposed heavy tariffs on Mexico, Canada and China, which can help Indian exporters to increase their shipments in the US market. Earlier, Donald Trump had also imposed tariffs on Chinese goods during his first term. Due to this tariff, Indian exporters got a lot of help in increasing their shipments. There was an atmosphere of enthusiasm in the domestic stock market today due to the possibility of Indian exporters benefiting from the tariff war.
However, Khurana also says that one should not be too excited about today’s rise in the stock market. According to him, Nifty is getting strong support at the level of 22 thousand points and Sensex at the level of 72,800 points. But if the market breaks at this level, then Nifty can fall to the level of 21,500 and Sensex to the level of 71,500 points. Therefore, investors should avoid short term trade right now.
Hindusthan Samachar / Jun Sarkar
