Synopsis
The Nifty Metal index took a hit due to falling share prices of JSW Steel and Tata Steel, influenced by new US tariffs on steel and aluminum imports. The tariffs, announced by President Trump, are set to affect global metal pricing and have raised concerns in American industries.Key Takeaways
- JSW Steel and Tata Steel's shares fell significantly.
- New US tariffs on steel and aluminum have been imposed.
- The Nifty Metal index dropped by 1.85%.
- Alcoa warned of job risks due to these tariffs.
- The overall market cap of the metal sector declined to Rs 15.77 lakh crore.
Mumbai, March 12 (NationPress) - The stock prices of JSW Steel Limited and Tata Steel Limited experienced a downturn on Wednesday, contributing to a drop in the Nifty Metal index.
This decline follows the implementation of new tariffs on steel and aluminum imports by the US, which has influenced global market sentiment.
US President Donald Trump declared a 25 percent duty on steel and aluminum imports, with no exemptions provided.
This decision is anticipated to impact metal pricing on the international stage. In spite of the apprehensions expressed by American industries, including aluminum giant Alcoa Corp, Trump has moved forward with the tariff increase.
Alcoa indicated that these tariffs might jeopardize thousands of jobs and escalate costs for American consumers who are already grappling with inflation.
As a result of this news, the Nifty Metal index plummeted by 1.85 percent, hitting a low of 8,732.95. The Nifty index experienced a milder decline of 0.65 percent, trading at 22,351.9.
Initially, the Nifty Metal index had risen by 0.85 percent to reach 8,972.60, but it later retreated into negative territory.
JSW Steel Limited and Tata Steel Limited emerged as the primary contributors to the decline in the Nifty Metal index by midday.
In contrast, Vedanta Limited and Welspun Corporation provided some support to the index. The overall market capitalization of metal companies decreased by Rs 12,830 crore, bringing the sector’s total valuation down to Rs 15.77 lakh crore.
Most stocks within the Nifty Metal index experienced losses. APL Apollo Tubes Limited reported the highest intraday loss of 2.91 percent, trading at Rs 1,406.80 per share.
Jindal Stainless Limited and Ratnamani Metals & Tubes Limited also witnessed declines of 3.10 percent and 1.17 percent, respectively.
However, Hindustan Copper Limited and Welspun Corporation defied the trend by trading higher within the index.
Meanwhile, the Indian stock market opened flat on Wednesday, mirroring mixed global cues. At the onset of trading, the Sensex increased by 22.30 points, or 0.03 percent, reaching 74,080.02, while the Nifty rose by 24.65 points, or 0.11 percent, to hit 22,473.25.
The Nifty Bank index saw an increase of 231.40 points, or 0.48 percent, trading at 47,867.05. The Nifty Midcap 100 and Nifty Smallcap 100 indices also recorded minor gains.
