Mumbai, Feb 10 (IANS) Shares of domestic metal companies on Monday declined sharply after the US President Donald Trump announced to impose a 25 per cent tariff on all steel and aluminum imports.This statement raised concerns about disruptions in the global metal market and led to selling pressure on steel stocks.
In response to these developments, stocks of Tata Steel (NSE:TISC), JSW Steel (NSE:JSTL), and Hindalco Industries (NSE:HALC) fell nearly 3 per cent, making them some of the worst performers on the Nifty 50 index.
Other companies like Vedanta (NSE:VDAN), and Jindal Steel also dropped by 3-4 per cent.
The Nifty Metal index fell more than 2 per cent, resulting in top loser sector of the day.
Trump, while speaking to reporters aboard Air Force One on Sunday, said that the tariffs would apply to metal imports from all countries.
However, he did not specify when these duties would be implemented.
His announcement has created uncertainty in the market as investors are worried about supply and demand issues in the global metal industry.
The possibility of higher tariffs in the US poses a serious challenge for metal producers worldwide.
If implemented, the tariffs would make foreign steel and aluminum more expensive in the US, reducing their competitiveness and impacting demand.
For exporters, this could mean lower profits as the cost of selling in the US increases.
Additionally, with limited access to the US market, global metal producers might face an oversupply of steel and aluminum, which could lead to a drop in prices and a decline in earnings.
In the early trade, the Sensex was trading at 77,575.91 with a decline of 284.28 points or 0.37 per cent, while the Nifty was down 87.95 points or 0.37 per cent at 23,472.00.
The Indian rupee also opened on a lower note by 53 paise to 87.95 against the US Dollar on Monday.
--IANS
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