“The equity markets closed for the week deep in the red, with the frontline indexes losing altitude by 1.90 % and the broader markets close to 3 %. While the trend of market decline continues unabated, the larger than expected fall has been caused due to uncertainties surrounding the actual impact of the countervailing tariffs imposed by the US, and similar walls erected by other countries including China. What has caused much of consternation is the possibility of China devaluing its currency in response to the tariffs to sustain its trade competitiveness. However, the last time around currency devaluation led to investment outflows from China. The move may have consequences for other regional currencies as well like Taiwan and South Korea, though the Rupee may be much less affected as it is still under managed floating and has a perennial trade deficit. This trend may continue in the coming weeks too, but with persistent sell off the market correction is close to its saturation levels.”