Shares of ten metal and mining firms fell by 2.11% to 6.24% at 11:05 IST on BSE after US President Donald Trump announced tariffs on Chinese goods stoking fears of a trade war.
Steel Authority of India (down 6.24%), Tata Steel (down 3.04%), Hindalco Industries (down 3.31%), Hindustan Zinc (down 3.62%), Vedanta (down 3.28%), NMDC (down 2.11%), Hindustan Copper (down 3.4%), National Aluminium Company (down 3.92%), Jindal Steel & Power (down 4.81%) and JSW Steel (down 2.8%) edged lower.
Bhushan Steel (BSL) was up 5.06%. Tata Steel announced before trading hours today, 23 March 2018, that it has been declared as the successful resolution applicant by the Committee of Creditors (CoC) of BSL on 22 March 2018, subject to obtaining necessary regulatory approvals, including approval from the NCLT and the Competition Commission of India. Tata Steel has accepted the Letter of Intent for BSL under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code 2016 (IBC).
The S&P BSE Metal index was down 367.18 points or 2.73% at 13,098.28. It underperformed the Sensex, which was down 369.34 points or 1.12% at 32,636.93.
Metal and mining stocks were also under pressure as copper prices fell in global commodity markets. High Grade Copper for May 2018 delivery was currently off 0.4% at $3.0080 per pound on the COMEX.
US President Donald Trump signed an executive memorandum on Thursday that would impose retaliatory tariffs on at least $50 billion in Chinese imports. The new measures are designed to penalise China for trade practices that the Trump administration says involve stealing American companies' intellectual property. They will primarily target certain products in the technology sector where China holds an advantage over the US. Investors are concerns that protectionist trade policies could be met with retaliatory measures by major trading partners, and that a trade war could contribute to inflation in the economy.
Meanwhile, China, as a retaliation to US President Donald Trump's tariff plans, announced for reciprocal tariffs on $3 billion of imports from the US. Such imports include US pork, recycled aluminium, steel pipes, fruits and wine. China will also pursue legal action against the US at the World Trade Organization in response to the US planned tariffs on steel and aluminum imports, and called for dialog to resolve the dispute. This is a response to Trump's tariffs on Chinese imports to compensate for alleged intellectual property abuses by China.
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