Shares of nine metal shares fell by 1.88% to 5.89% at 11:08 IST as escalating China-US trade war shook confidence in the world economy.
Tata Steel (down 5.89%), JSW Steel (down 5.51%), Vedanta (down 4.22%), Steel Authority of India (down 3.67%), Hindalco Industries (down 3.61%), Jindal Steel & Power (down 3.09%), NMDC (down 2.38%), Hindustan Zinc (down 2.35%) and National Aluminium Company (down 1.88%), declined. Hindustan Copper was up 0.17%.
The S&P BSE Metals index slumped 3.74% at 8,168.74. It steeply underperformed the Sensex, which was up 0.37% at 36,838.74.
Investors are concerned that the Sino-US trade war could trigger a worldwide economic slowdown, which could undermine metals usage. China is the world's top consumer of industrial metals.
US President Donald Trump, on Friday, announced he will raise tariffs from 25% to 30% on $250 billion in goods that are already being taxed starting 1 October. He also threatened to ratchet up promised tariffs on the remaining $300 billion in Chinese imports from 10% to 15%.
Trump's announcement came after Beijing unveiled a new round of retaliatory tariffs on about $75 billion worth of US goods. China will place additional tariffs of 5% or 10% on US imports starting on 1 September, according to a statement posted by China's Finance Ministry.
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Earlier Friday, Trump ordered US companies doing business in China to find an "alternative" and had promised to deliver further action after he met with his economic team at the White House.
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