Modi restricts fuel and gold consumption, Indian stock market under pressure as the market worries about overall consumption suppression

(1) Indian Prime Minister Modi's push to restrict fuel and gold consumption has increased uncertainty in India's already weak stock market and raised concerns that measures aimed at protecting the economy may ultimately suppress overall consumer spending. (2) On Wednesday, the Indian government more than doubled the import tax on gold and silver. Previously, Modi had called for a reduction in non-essential imports to protect foreign exchange reserves. (3) Affected by the Middle East conflict, investors are increasingly worried about further measures, such as rising fuel prices, and the Indian NIFTY index has dropped about 3% this week. (4) Goel, Chief Global Strategist at Pace 360, stated that the first round of action has begun, namely taxing gold imports, and that more measures may be introduced. He predicts that if the war with Iran continues, retail gasoline prices will rise. (5) Goel said that the market has reacted strongly to these statements, and pessimism on the geopolitical front has once again reached extremely high levels.