Stories
Stock Market Volatility: Sensex Drops 350 Points After FM Sitharaman's Trade Deal Comments
- •After eight weeks of decline, the stock market saw a rally on Monday, October 5, with Sensex crossing 72,600 and Nifty 22,600.
- •The initial rally eased after Finance Minister Nirmala Sitharaman commented on the India-US trade deal talks, suggesting limited scope for further concessions.
- •Following Sitharaman's statement, the Sensex fell approximately 350 points from its day's high, and Nifty traded below 22,550.
- •Despite the drop, both Sensex and Nifty remained in the green, with 2,133 shares rising and 1,558 falling.
- •Sitharaman highlighted the difficulty of further concessions in the India-US trade deal, noting India's trade surplus and the US desire to reduce the gap.
Key Questions Answered
The initial stock market rally eased after Finance Minister Nirmala Sitharaman stated that India-US trade deal talks had reached a point where providing further concessions might be very difficult for both sides.
Sitharaman stated that intensive negotiations have taken place, but the scope for additional mutual concessions may be limited. She noted that the trade balance is in India's favor, meaning India buys less from the US than it sells, and mentioned that import tariffs are now being used as a weapon.
Despite the Sensex falling about 350 points from its day's high and the Nifty trading below 22,550 after the Finance Minister's statement, both indices remained in the green with gains. At 10:22 AM, the Sensex was up 383.98 points at 72,293.68 and the Nifty was up 104.40 points at 22,526.35.
