India's strength surpassed that of Pakistan and China's stock markets. Is the tariff spoiling the game?

Indian Share Market: Last year, the performance of the Indian stock market was very poor compared to many other markets. During this period, it has fallen by up to 2 percent.

Indian Share Market: Although the Indian stock market saw a rise in early trade on Wednesday after the government's decision to revise the GST rates, the reality is that last year the performance of the Indian stock market has been very poor compared to many other markets. During this period, it has declined by up to 2 percent.

This situation of the Indian stock market is even more serious as compared to the of neighboring countries like Pakistan and China because during the last year, the stock markets here have not only achieved double digit growth but are also at the top among the best performing stock markets globally. 

 

After the announcement of reduction in GST rates on Wednesday, today, on 4th September, the Sensex rose by 1%, but in the last one year, the Sensex comprising 30 stocks has been continuously in loss. Whereas during this period, other markets of the world have increased by up to 95%. Now the question arises that why is India at the lowest rank among about 20 stock markets around the world? 

Amazing jump in Asian markets 

Whereas the KSE 100 index of the Pakistani stock market has given a fantastic return of 95 percent in the last one year, which has given huge profits to the investors. According to Bloomberg data, the KSE 100 index is up 94.44 percent. Meanwhile, China's Shanghai index has also jumped by 35 percent in the last one year.

 

Canada's TSX Composite has climbed up to 25 percent. Along with this, Japan's Nikkei has climbed up to 15 percent, Britain's FTSE index has climbed up to 11 percent and Brazil's Bovespa index has climbed up to 3 percent in the last one year. The US stock market has also gained 1 percent. 

Why did the Indian stock market fall? 

Experts say that these three major reasons are responsible for the poor performance of the Indian stock market. Out of these, the impact of American tariffs is the highest. In the last two-three quarters, there has been a decrease in the income of companies in India. Due to this, foreign investors sold many Indian shares.

Secondly, the issue has become more complicated due to the tariff war in America. According to a report in The Mint, G Chokkalingam, founder and CEO of Economics Research, said, "Initially, the tariff war affected all markets, but in the second phase, it affected India the most."