Investors Brace for Impact as Reciprocal Tariffs Loom

Analysts are closely monitoring the potential repercussions of the April 2 reciprocal tariffs on global trade. The U.S. has indicated plans to impose these tariffs on key trading partners, including India, which could significantly sway investor sentiment. "All eyes are now on Trump's April 2 tariff announcement," noted Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.

Key Economic Indicators Under the Microscope

With markets closed for Eid-Ul-Fitr, the focus shifts to global developments. The PMI data for manufacturing and services sectors, alongside the rupee-dollar trend and Brent crude movements, are pivotal. "The implementation of reciprocal tariffs and their impact on global trade will be closely watched," said Ajit Mishra of Religare Broking Ltd.

FII Flows and Earnings Outlook in the Spotlight

The shift from FII selling to buying has intensified, with the market's future hinging on the severity of the upcoming tariffs. "If the tariffs are not severe, the rally may continue," commented V K Vijayakumar from Geojit Investments Limited. Quarterly earnings reports are also eagerly anticipated for insights into corporate health.

Reflecting on Last Week's Market Performance

The BSE Sensex and NSE Nifty both posted gains, with the Sensex surging 3,763.57 points in FY 2024-25. The market cap of BSE-listed firms reached an impressive ₹4,12,87,646.50 crore (USD 4.82 trillion).

Disclaimer: The opinions and recommendations herein are those of brokerage firms and not of The Times of India. Consult a financial advisor before making investment decisions.