Decline in Indian Metal Stocks as Trump Proposes New Tariffs
Click to start listening
Synopsis
On February 10, metal companies in India saw a notable drop in share prices after US President Donald Trump announced a proposed 25% tariff on steel and aluminum imports. This has raised concerns over market disruptions, affecting major players like Tata Steel and Hindalco Industries.
Key Takeaways
- Indian metal stocks fell sharply.
- Trump announced a 25% tariff on metal imports.
- Major companies like Tata Steel and JSW Steel faced declines.
- The Nifty Metal index was the top loser sector.
- Market uncertainty is heightened due to these developments.
Mumbai, Feb 10 (NationPress) Shares of Indian metal companies experienced a significant decline on Monday following US President Donald Trump's announcement regarding a 25% tariff on all steel and aluminum imports. This declaration has sparked concerns over potential disruptions in the global metal market, leading to increased selling pressure on steel stocks.
In light of these developments, major players such as Tata Steel, JSW Steel, and Hindalco Industries saw their stocks drop by nearly 3%, making them among the biggest losers on the Nifty 50 index.
Other companies, including Vedanta and Jindal Steel, also faced declines of 3-4%.
The Nifty Metal index fell by more than 2%, marking it as the top loser sector of the day.
During a press briefing aboard Air Force One on Sunday, Trump indicated that the tariffs would affect metal imports from all nations.
However, he did not clarify the timeline for the implementation of these duties.
This announcement has injected uncertainty into the market, as investors express concerns regarding supply and demand issues within the global metal sector.
The potential for higher tariffs in the US presents a significant challenge for metal producers globally.
If put into effect, these tariffs could render foreign steel and aluminum more expensive in the US, diminishing their competitiveness and affecting demand.
For exporters, such measures could lead to decreased profits due to rising costs associated with selling in the US.
Moreover, with restricted access to the US market, global metal producers may confront an oversupply of steel and aluminum, potentially resulting in price drops and reduced earnings.
At the start of trading, the Sensex was at 77,575.91, declining by 284.28 points or 0.37%, while the Nifty fell by 87.95 points or 0.37%, settling at 23,472.00.
Additionally, the Indian rupee opened lower, depreciating by 53 paise to 87.95 against the US Dollar on Monday.
