Stock Market Declines as Trump Proposes New Tariffs on Steel and Aluminium Imports
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Synopsis
Mumbai, Feb 10 (NationPress) The domestic benchmark indices opened lower as US President Trump threatened a new 25% tariff on all steel and aluminium imports, including from Canada and Mexico. The rupee weakened, and most Nifty stocks fell, with JSW Steel and Tata Steel facing significant declines.
Key Takeaways
- Domestic benchmark indices opened lower.
- Trump threatens a 25% tariff on all steel and aluminium imports.
- Sensex and Nifty experience declines.
- Rupee weakens against the US Dollar.
- Most Nifty stocks are trading lower.
Mumbai, Feb 10 (NationPress) The domestic benchmark indices experienced a decline on Monday as US President Donald Trump issued a warning regarding the potential imposition of a new 25 percent tariff on all steel and aluminium imports, which includes products from Canada and Mexico.
The anticipated tariffs are set to be enforced starting Monday (US time), with further import duties likely to follow later in the week. On Sunday, while speaking to reporters aboard Air Force One, Trump indicated that he would also introduce reciprocal tariffs, which are expected to take effect almost immediately.
As of 9:30 am, the Sensex was at 77,575.91, down 284.28 points (0.37 percent), while the Nifty fell by 87.95 points (0.37 percent) to 23,472.00.
The rupee also depreciated by 53 paise, trading at 87.95 against the US Dollar.
Most Nifty stocks were in the red, with JSW Steel and Tata Steel experiencing the most significant declines following Trump's tariff announcement.
The Nifty Pharma index also dropped amid concerns that the US tariffs could extend beyond metals to pharmaceutical products. The Nifty Auto and Nifty PSU Bank sectors were the only gainers.
Key gainers on the Nifty included Bharti Airtel, Britannia, Hero MotoCorp, SBI, and Kotak Mahindra Bank.
Following a negative opening, the Nifty may find support at 23,500, followed by 23,400 and 23,300. On the upside, an immediate resistance level is at 23,700, with further resistance at 23,800 and 24,000, as noted by Hardik Matalia, a derivative analyst at Choice Broking.
Charts for the Bank Nifty suggest potential support at 50,000, followed by 49,700 and 49,500. If the index continues to rise, an initial key resistance level could be 50,300, with further resistance at 50,500 and 50,800, according to Matalia.
In the Asian markets, stocks in South Korea showed little movement on Monday morning, as gains in the tech sector countered losses in steel and auto shares amid concerns about the repercussions of Trump’s extensive tariffs on various industries.
Additionally, foreign institutional investors (FIIs) sold equities worth Rs 470 crore on February 7, while domestic institutional investors (DIIs) bought equities worth Rs 454 crore.
