Metal stocks lead Sensex to slump on Trump’s import tariffs
U.S President Donald Trump’s plans for tariffs on steel and aluminum to protect the domestic industries risks igniting a global trade war.business Updated: Mar 05, 2018 15:00 IST
India’s benchmark equity index reopened after the Holi holiday on Friday, and headed for its steepest decline in two weeks as investors weighed the potential impact of America’s plans to impose stiff tariffs on steel and aluminum imports.
The benchmark S&P BSE Sensex fell for a fourth session, slipping 0.85% to 33,758.24 at 2.51 pm in line with most Asian peers. This after the measure ended February with its worst monthly performance in two years.
All but one of the 19 sectoral indexes compiled by BSE Ltd. declined led by a gauge of metal companies, that tumbled to near a one-month low. Tata Motors Ltd. and Tata Steel Ltd. were among the worst performers on the benchmark index, losing at least 2%.
“The U.S. measures threaten to impact margins of metal companies,” said A. K. Prabhakar, head of research at IDBI Capital Market Services Ltd. “The trend is weak and a drop below 10,275 on the Nifty may see it accumulating further losses.” The NSE Nifty 50 Index is down 1% at 10,356.55.
U.S President Donald Trump’s plans for tariffs on steel and aluminum to protect the domestic industries risks igniting a global trade war. The order, due to be formally signed this week, is part of his plan to counter what he says are decades of unfair trade practices and ill-advised trade agreements that have robbed the U.S. of revenue and jobs.