Stock market trades lower as Trump threatens new tariff on all steel, aluminium imports
"Indian stock market declines as US President Trump announces a 25% tariff on all steel and aluminium imports. Sensex and Nifty trade lower amid global trade tensions."
Mumbai: The Indian stock market opened lower on Monday as US President Donald Trump announced his decision to impose a 25% tariff on all steel and aluminium imports, including those from Canada and Mexico.
This move has triggered market volatility globally, affecting various sectors in India, particularly steel and metal stocks.
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Trump’s Tariff Announcement Shakes Global Markets
During a press briefing aboard Air Force One on Sunday, Trump revealed that the new tariffs will take effect immediately starting Monday (US time), with additional import duties expected later in the week.
The US President also warned of reciprocal tariffs, escalating trade tensions and sparking concerns over a potential global trade war.
Impact on Indian Stock Market
At 9:30 AM IST, the BSE Sensex dropped by 284.28 points (0.37%), settling at 77,575.91, while the NSE Nifty declined by 87.95 points (0.37%), trading at 23,472.00.
The Indian Rupee (INR) also weakened, falling 53 paise to 87.95 against the US Dollar, reflecting increased uncertainty in global trade and currency markets.
Sector-Wise Performance
The tariff announcement heavily impacted Nifty Metal stocks, with JSW Steel and Tata Steel leading the losses. The pharmaceutical sector also took a hit, amid fears that the US tariffs could extend to pharma exports in the near future.
However, some sectors showed resilience amidst the market downturn. Nifty Auto and Nifty PSU Bank indices managed to stay in the green, bucking the broader negative trend.
Top Gainers and Losers on Nifty
Major Gainers:
- Bharti Airtel
- Britannia Industries
- Hero MotoCorp
- State Bank of India (SBI)
- Kotak Mahindra Bank
Major Losers:
- JSW Steel
- Tata Steel
- Sun Pharma
- Hindalco Industries
- Lupin
Technical Analysis and Market Outlook
Nifty Support & Resistance Levels:
According to Hardik Matalia, Derivatives Analyst at Choice Broking, after a negative opening, Nifty could find support at 23,500, followed by 23,400 and 23,300. On the upside, immediate resistance is at 23,700, with further resistance levels at 23,800 and 24,000.
Bank Nifty Support & Resistance Levels:
Bank Nifty may find support at 50,000, 49,700, and 49,500, while the resistance levels are expected at 50,300, 50,500, and 50,800.
Global Market Reaction to Trump’s Tariffs
Asian stock markets showed mixed reactions to Trump’s tariff announcement. While South Korean stocks remained largely unchanged, the tech sector gains balanced losses in steel and auto stocks. However, concerns persist about the broader economic impact of the US administration’s protectionist policies.
Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) Activity
On February 7, FIIs offloaded equities worth Rs 470 crore, reflecting caution amid growing trade tensions. In contrast, DIIs remained net buyers, purchasing equities worth Rs 454 crore.
