Hindalco, Tata Steel, JSW Steel And Other Metal Stocks Rally On Easing Trade War Fears

Metal stocks such as Tata Steel, Hindalco, and JSW Steel rallied up to 6.7 per cent on Friday, April 11 after US President Donald Trump’s 90-day tariff pause, which has eased concerns of trade wars. The Nifty Metal index jumped 4.09 per cent today, snapping its two-day losing streak. From its 52-week low hit on April 7, the index is now up by more than 6 per cent.

Leading the index was the Aditya Birla group’s flagship company Hindalco, which jumped 6.7 per cent in today’s session. Following it were Jindal Stainless Ltd (+5.96 per cent), JSW Steel (+4.99 per cent), Tata Steel (+4.95 per cent), and Lloyds Metals and Energy (+4.12 per cent).

Adani Enterprises, Hindustan Zinc, SAIL, APL Apollo Tubes, NMDC, Jindal Steel and Power, and Vedanta also gained between 2.5 per cent to 4 per cent. Other metal stocks such as Hindustan Copper, Welspun Corporation and National Aluminium also ended the day in gains. All 15 constituents of the index closed the day in green.

Trump’s 90-day Tariff Pause Boosts Investor Sentiments

Trump’s 90-day tariff pause announcement brought much-needed relief among Indian metal exporters. Before Trump’s announcement, metal stocks had slipped as investors were concerned about an economic slowdown in the US, which could affect other economies and reduce the demand for metals. On top of that, the heavy tariffs imposed on around 60 countries led to concerns about cheaper products being dumped into countries like India, which could hurt local businesses in the sector.

Shares of Hindalco and Tata Steel, which have considerable exposure in global markets, reacted swiftly to the development. 

Tata Steel Plans Major Overhaul, To Slash 1600 Jobs

Tata Steel's Netherlands unit has come out with a restructuring plan, under which it will slash around 1600 managerial and support function employees. The Tata Group company has formally submitted a request for advice for the transformation plan to the Central Works Council and has informed trade unions about the same.

“Tata Steel Nederland has an ambitious green steel transition plan under which one of the two blast furnaces will be replaced by a new Direct Reduced Iron furnace and Electric Arc Furnace by the end of this decade,” said the company in an exchange filing.

This transformation plan boosted sentiment in the stock.