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New Delhi: Shares of metal companies witnessed heavy selling pressure, with conglomerate Vedanta plunging over 8 per cent a day after President Donald Trump's sweeping reciprocal tariffs barrage reignited the fears of global trade war.
The stock of National Aluminium Company plunged the most by declining 8.66 per cent to close at Rs 157.70 apiece, Vedanta tanked 8.63 per cent to Rs 401.60, and Tata Steel fell 8.59 per cent to Rs 140.45 on the BSE.
In addition, Hindalco Industries' shares plunged 8.09 per cent to finish at Rs 599.95 apiece, NMDC by 7.69 per cent to end at Rs 65.08, Jindal Stainless by 7.25 per cent to Rs 551.70, and Hindustan Zinc by 7.04 per cent to Rs 427.05 per piece.
Among others, the scrip of Jindal Steel & Power dipped 6.13 per cent to settle at Rs 849.50 per share, SAIL by 4.98 per cent to Rs 112.55 and JSW Steel by 3.42 per cent to Rs 1,007.20 apiece on the exchange.
The drop in metal stocks is attributed to the higher-than-expected reciprocal tariffs by the Trump Administration, which have fuelled recession fears and raised concerns over global economic growth.
The BSE Metal index plummeted 1,925.11 points or 6.34 per cent to 28,450.44, while the BSE benchmark Sensex tanked 930.67 points or 1.22 per cent to 75,364.69.
According to Angel One's Research Analyst of Commodities Heena Naik, Trump sparked concerns about global demand for metals as he unleashed sweeping reciprocal tariffs on 60 countries, including India.
Apparently, the US President has introduced a minimum tariff of 10 per cent on most goods imported to the United States. The tariffs include significantly higher duties on products from dozens of countries that could potentially increase inflation and hinder economic growth in the US and globally, Naik said.
On Wednesday, the Trump administration announced 26 per cent reciprocal tariffs on India, saying New Delhi imposes high import duties on American goods.
However, automobiles and auto parts and steel and aluminium articles, already subject to Section 232 tariffs at 25 per cent, announced in March, are not covered in the latest order.
According to a release by the White House, "... steel/aluminium articles and autos/auto parts already subject to Section 232 tariffs" and hence exempted from the Liberation Day announcements made by US President Donald Trump on Wednesday.
Last month, the United States slapped a 25 per cent tariff on all steel and aluminium imports into the US.