Impact of Trade Wars on the Indian Stock Market: Understanding the Ripple Effect
Trade wars — when countries impose tariffs or restrictions on each other's goods — can shake up global economies and financial markets. While the primary battle might be between two nations, the effects can spill over, impacting other economies, including India. Let’s break down how global trade tensions influence the Indian stock market and what investors can learn from these events. How Trade Wars Affect Global Markets When major economies, like the United States and China, clash over trade policies, it creates uncertainty worldwide. Higher tariffs raise costs for businesses, disrupt supply chains, and slow global trade. This uncertainty makes investors nervous, leading to sharp market fluctuations. Since India is deeply connected to the global economy, these international disputes indirectly affect Indian markets — even if India isn’t directly involved in the conflict. Key Ways Trade Wars Impact the Indian Stock Market 1. Market Volatility and Investor Sentiment Global ...