Punjab Newsline, National
Impact of Donald Trump’s new move to stop the Russia-Ukraine war triggers heavy sell-off in Indian stock market
The threat of imposing a massive 500 percent tariff by former US President Donald Trump has created turmoil across global financial markets, with the Indian stock market also facing its impact. During the trading session, the Sensex plunged nearly 750 points, reflecting panic-driven selling and growing uncertainty among investors. Trump’s latest statement, linked to efforts aimed at stopping the Russia-Ukraine war, has raised serious concerns in global trade and economic circles.
According to reports, a new sanctions-related law proposed in the United States targets countries that continue to buy oil and other energy products from Russia. Donald Trump has warned that if sufficient pressure is not built on Russia to end the war, countries engaging in trade with Moscow could face tariffs as high as 500 percent. This strong stance has unsettled investors worldwide, particularly in emerging markets like India.
The Indian stock market witnessed broad-based selling, with heavyweight stocks leading the decline. Banking, IT, metal, oil and gas, and energy stocks came under sharp pressure. Most Sensex constituents ended the session in the red, while the Nifty also slipped below key psychological levels. Midcap and smallcap stocks were not spared either, indicating widespread weakness across the market.
Market experts believe India’s continued purchase of Russian crude oil has made investors cautious amid fears of potential US sanctions. Any aggressive action by the US could impact India’s energy imports, raise costs, and increase inflationary pressure, which in turn may hurt corporate earnings. These concerns were clearly reflected in the sharp fall in equity markets.
Adding to the pressure, a stronger US dollar and sustained selling by foreign institutional investors (FIIs) further weakened market sentiment. Global cues were also unfavorable, as Asian and European markets traded lower amid escalating geopolitical tensions and uncertainty over future US trade policies.
Analysts say investors are currently avoiding risky assets and shifting towards safer investment options until there is more clarity on geopolitical developments. The Russia-Ukraine conflict and the US government’s next steps on sanctions and tariffs are expected to play a crucial role in determining market direction in the coming days.
For now, experts advise investors to remain cautious and avoid panic-driven decisions. Market volatility is likely to persist until the global situation stabilizes and clearer signals emerge from the US regarding trade and sanctions policy.