Stock Market Update: The order to impose tariffs by the Donald Trump administration on April 2 is going to come into effect from today. After months of speculation and negotiations, the Trump government is going to implement reciprocal tariffs from today.
Domestic stock market
The White House has confirmed it. On the other hand, the Sensex has climbed 150 points in the domestic stock market on Wednesday, April 2. While the Nifty has opened above 23,200. Investors’ concerns in the stock market have increased a lot. Talking about Tuesday, a day before, the BSE Sensex closed at 76024.51. While the Nifty closed at 23,165.70 with a fall of 1.50%.
Why is the stock market in turmoil?
A day earlier, shares of telecom company Vodafone Idea Limited (VIL) rose more than 19 percent on Tuesday. This surge in its stock came after the government decided to buy shares worth Rs 36,950 crore of the company in lieu of spectrum auction dues.
After this, the government’s share will more than double to 48.99 percent.
The company’s stock closed at Rs 8.10 on the BSE, up 18.94 percent. During the day, it rose 25.84 percent to Rs 8.57. The company’s stock closed at Rs 8.10 on the NSE, up 19.11 percent. During trading, the company’s stock rose 25.88 percent to Rs 8.56. The company’s market valuation has increased by Rs 9,209.71 crore to Rs 57,828.36 crore.
what did the company say
In volume terms, 3,521.06 lakh shares of the company were traded on BSE and 23,006.70 lakh shares were traded on NSE.
The government is already the largest shareholder in debt-laden Vodafone Idea with a 22.6 per cent stake and the fresh move will take its total stake to more than the combined stake of the company’s promoter firms – Vodafone and Aditya Birla Group.
Currently, the two promoters of VIL hold 14.76 per cent and 22.56 per cent stake respectively in the company. The company said in a notice to the stock exchange on Monday, “The Ministry of Communications has released the target for the telecom sector in September, In line with the Reforms and Support Package 2021, it has been decided to convert the outstanding spectrum auction dues into equity shares to be issued to the Government of India. The total amount to be converted into equity shares is Rs 36,950 crore.”