Sensex, Nifty in Turmoil: What's Fueling the Market Mayhem – China, Trump, and More

Indian stock market today investors are gearing up for a new round of selling that will be more intense due to China announced that it will impose 34 percent tariffs to all US imports, and also impose export restrictions on rare earth minerals starting April 10as tariffs on tit-for-tat by two world's biggest economies are threatening global economy's growth. India is presently in talks with the US administration on bilateral market selloff agreements and the US market, is not the only one to be affected.

With new tariffs on imports imposed from China and the US, the demand for US exports could decrease and could hurt overall US economy. Due to China's size -- it's one of the largest trading partners with 120 countries including India and China -- a greater US tariff could cause an increase in the supply of Chinese products, which could hurt the manufacturing industry in the US, Systematix warned.

"The tariff shock is likely to herald a sharper growth slowdown, while the risk of China dumping is a disinflationary risk," Nomura declared.

Nasdaq Composite fell 5.82 percent on Friday. The Nasdaq Composite fell 5.82 per cent on Friday, with Dow Jones and S&P 500 climbing to 5.97 percent, prompting ebb within Asia today. Japan market fell 7 percent, while Korea's Kospi has dropped 5.24 percent. Australia's S&P/ASX 200 is down 6 percent.

A full-blown trade war will affect US stocks as well as global economic growth. The sharp decline of the index of the dollar to 102 is favorable to capital flow to emerging economies like India. But FPIs will likely remain in a wait and see mode until they can become buyers. In total, FPI trading in India as of 5 April stood at 10,354 crore" stated VK Vijayakumar Chief Investment Strategist at Geojit Investments.