Stock Market News: A major challenge has arisen for Indian exporters. The US has implemented 50 percent customs duty on Indian products. This rule became effective from Wednesday. Analysts say that the decision will have the most impact on export-based sectors such as textiles, gems and jewelery, leather, shoes and marine products.
In fact, the US President had announced an additional 25 percent fee on India for oil purchases from Russia. Already 25 percent fee was already applicable, and now the total fee is 50 percent.
The impact will be seen on shares
The stock markets were closed due to Ganesh Chaturthi on Wednesday, so its effect did not appear. But analysts believe that there may be slight nervousness among investors in Thursday’s session.
Jijit Investments Chief Strategist V.K. Vijaykumar says that early trade may decline, but there is no need to panic as investors were already expecting this fee increase. At the same time, Director of Master Trust Group Puneet Singhania said that the income of export-based companies may be under pressure. However, defensive sector such as drug and IT will remain attraction for investors.
Markets can remain in limited circles
According to Trivesh D, COO of Tradezini, high fees will challenge the export-based sector, but the overall market may remain in a limited range. Let us tell you that America’s share in India’s total exports is about 20 percent. In such a situation, the increase in fee can become a big concern for Indian exporters. At present, investors’ eyes are on Thursday’s market.
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