Global Market Overview



Global financial markets have experienced significant volatility recently, primarily due to escalating trade tensions between the United States and China. On April 9, U.S. President Donald Trump announced a 90-day pause on tariffs for most countries, maintaining a 10% baseline tariff during this period. However, tariffs on Chinese imports were increased to 125%, prompting China to retaliate by raising tariffs on U.S. goods from 34% to 84%. This development led to a surge in U.S. stock markets, with the S&P 500 gaining 5.6%—one of its most significant single-day gains since World War II. 

Impact on Indian Markets

The Indian stock markets were closed on April 10 in observance of Mahavir Jayanti and are set to reopen on April 11. The pause in U.S. tariffs is expected to positively influence Indian markets upon reopening. Analysts anticipate a strong gap-up opening, driven by the relief over the temporary easing of trade tensions. 


Economic Forecasts and Policy Responses

Moody's Analytics has revised India's 2025 GDP growth forecast downward by 30 basis points to 6.1%, citing potential economic effects of U.S. tariffs. Key Indian export sectors such as gems and jewellery, medical devices, and textiles are expected to be most negatively impacted. In response, the Reserve Bank of India (RBI) has cut its key repo rate for the second consecutive time and shifted its stance to "accommodative" to stimulate the economy. 
 

Trade Developments

In a positive development, Britain and India are nearing the conclusion of a comprehensive free trade agreement, with 90% of the deal already agreed upon. The agreement aims to significantly reduce tariffs on key British exports such as whisky, cars, and food, which currently face tariffs as high as 150% in India. This deal is expected to bolster economic ties and stimulate trade between the two nations. 
Latest news & breaking headlines

Recommendations for Investors

Given the current market dynamics, Osho Krishan of Angel One suggests considering investments in ACC Ltd and Colgate Palmolive (India) Ltd. These recommendations are based on anticipated market movements and company performance. 
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Conclusion

The financial landscape remains dynamic, influenced by international trade developments and domestic economic policies. Investors are advised to stay informed and consider diversification strategies to navigate potential market fluctuations effectively.

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