Former Maharashtra CM and senior Congress leader Prithviraj Chavan criticised the government`s way of handling bilateral relationship with the US following the stock market crash in India on Monday, reported the ANI.
Chavan, while targeting PM Modi`s management of India`s relationship with the US stated PM is depending on his personal chemistry with US President Donald Trump.
The Indian stock market remained in the red on Monday following President Donald Trump`s announcement of tariffs
“Indian stock market has crashed hugely. It opened up about 3,000 points down…This happens to be the 5th or 6th biggest fall in the stock market. Unfortunately, the PM is depending on his personal chemistry with US President Donald Trump, and he thinks that he can conduct diplomacy on a personal repo with the American President,” Chavan told ANI.
“Global diplomacy doesn`t work that way…The global recession will hurt us badly. Now, the people who have invested in mutual funds will now lose heavily,” he added.
The Indian markets mirrored the global stock market plunge with both Indian indices opening to significant selling pressure.
The Nifty 50 index plunged 5 per cent in the opening, recording one of the steepest drops since COVID. It opened at 21,758.40 points, down by 1,146.05 points, or -5 percent.
Meanwhile, the BSE Sensex dropped by 5.29 percent, opening at 71,379.8, down by 3,984.80 points or 5.29 percent. Experts emphasised that the government must introduce a reform package to assist the markets in coping with the global selloff amid Trump`s announcements.
A Banking and Market expert, Ajay Bagga told ANI, “India will face the heat, not due to domestic reasons, but as an interlinked chain in the global portfolio flows. India will need a fiscal, monetary and reform package to protect the domestic economy from this global economic winter that is threatening to settle in. The consequences of an Economic-Nuclear policy which has announced the highest tariffs of a century on all trading partners are now coming home to roost”.
He also added, “Taking the cue from the USD 5.4 trillion 2-day meltdown in the US markets, we are seeing unprecedented selling in Asian markets, with Taiwan, which was closed on Thursday and Friday, seeing a 20 per cent down day and Hong Kong seeing a 10 per cent cut and then some recovery.”
(With ANI inputs)
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