The Nifty Metal index hammered 1.6% to the 9,047.95 level on Monday after the US President Donald Trump said that he would double the import duty on steel imports, implying this Wednesday.
On Friday, Trump announced to raise the tariffs on steel imports to 50%. He was addressing a rally at a US steel plant in Pennsylvania. Trump said the sharp uptick in steel tariffs will “even further secure the steel industry in the United States. Nobody’s going to get around that.”
Trump announces another wave of tariffs on steel
“It is my great honour to raise the tariffs on steel and aluminium from 25% to 50%, effective Wednesday, June 4th. Our steel and aluminium industries are coming back like never before. This will be yet another BIG jolt of great news for our wonderful steel and aluminium workers. Make America Great Again,” said Trump later in a social media post.
The fresh steel duty increase follows a similar hike earlier this year, when Trump raised tariffs on aluminium and steel to 25%. Following this, exporters met the Union Ministry of Commerce and Industry and told them that exports of around $5 billion were affected by this move.
The Nifty Metal index dropped the most among other sectoral indices. The majority of the baskets ‘ stocks were trading in the red.
The share price of Lloyds Metals and Energy fell the most in the index, declining more than 4% to Rs 1,332.60. It was followed by the stock price of JSW Steel, which fell 2.44% to the day’s low of Rs 969.25.
Other metal stocks like Hindustan Zinc, Vedanta, Tata Steel, and many others followed suit.
However, there were a few stocks like Adani Enterprises, National Aluminium Corporation (NALCO), and Welspun Corporation that inched up in the weak market.
Nifty Metal stock performance
The share price of Nifty Metal has fallen 2.25% in the past five trading sessions. It has risen 7% in the previous one month. However, the investors neither received returns nor lost gains in the time frame of last six months. Although the investors lost more than 9% in the previous one year. Also, you can check out other metal stocks on the list of metal stocks.