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The domestic stock market witnessed a growth of about 6% during the month of March. The biggest contribution to this growth was the buying by foreign institutional investors. But, in the last two trading sessions, FIIs have sold shares worth Rs 10,255 crore. In fact, late tonight, as per Indian time, US President Donald Trump has announced reciprocal tariffs. Tension is once again being seen in the market on Wednesday.

Dr. VK Vijaykumar, Chief Investment Strategist, Geojit Investments, said that today's announcement of tariff is expected to reduce the uncertainty regarding reciprocal tariff.

He said that FIIs bought aggressively in March in view of the end of the year. Short-covering was triggered in the market by FIIs' buying, due to which a boom was seen. But now the situation has changed with the beginning of the month of April. Investors are now focused on the announcements regarding reciprocal. 

What is scaring FIIs? 

A media report quoted an expert as saying that India cannot escape this reciprocal tariff. Two other factors are more important than this tariff. First, will this be an announcement that does not pose a major global risk? And second, if there is a sharp decline in the US market, can India and other markets of the world avoid it? Some experts are saying that our market has digested this bad news. If there is no tariff surprise regarding a selected sector, then there is not much impact on the domestic market. It is also worth noting that everyone is talking about Trump's reciprocal tariff, but it is difficult to predict what Trump's final decision will be.

 Will there be a chance to buy in the market now? 

Analysts believe that uncertainty will remain in the market for a short period. However, long-term investors should now start investing slowly. Vijaykumar said that the fundamental outlook for the Indian economy is strong. The volatility of the market is currently due to global factors. But, domestic demand is also strong.


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