New Delhi, Feb 10 (PTI) Metal stocks dropped on Monday following the US decision to impose an additional 25 per cent tariff on all steel and aluminium imports as announced by President Donald Trump.
Shares of National Aluminium Company tanked 4.83 per cent, SAIL tumbled 4.67 per cent, Vedanta declined 4.31 per cent, NMDC fell by 3.95 per cent and Tata Steel went lower by 3.11 per cent on the BSE.
The stock of JSW Steel dipped 2.20 per cent, Hindalco (1.87 per cent), Jindal Stainless (1.61 per cent) and Jindal Steel & Power (0.72 per cent).
The BSE metal index tanked 2.63 per cent.
Trump on Sunday said he will announce the new tariffs for steel and aluminium imports on Monday. Trump also reaffirmed that he would announce "reciprocal tariffs" — probably Tuesday or Wednesday — meaning that the US would impose import duties on products in cases where another country has levied duties on US goods, said news reports.
"Nifty declined 0.8 per cent to close at 23,382 level on account of weak market sentiments after President Donald Trump announced plans to impose reciprocal tariffs on countries levying duties on US goods. He also proposed 25 per cent tariffs on all steel and aluminium imports to the US which led to broad-based sell-off in metal stocks, reflecting fears of lower demand and pricing pressure due to the new tariffs," Siddhartha Khemka, Head - Research, Wealth Management at Motilal Oswal Financial Services Ltd, said.
The 30-share BSE Sensex dropped 548.39 points or 0.70 per cent to settle at 77,311.80 on Monday. The NSE Nifty declined 178.35 points or 0.76 per cent to 23,381.60.
"The US tariff threats continued to impact the market sentiment," Vinod Nair, Head of Research at Geojit Financial Services, said.
Moody's Ratings on Monday said Indian steel producers will face increased challenges in exporting their products following the US decision to impose an additional 25 per cent tariff on all steel and aluminium imports as announced by President Donald Trump.
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