Shares of domestic metal sector players witnessed a sharp correction on April 4, a day after US President Donald Trump’s tariff announcement. Notably the Nifty Metal index also declined over 5 per cent to 8508.05 levels in early trade.
Nifty Metals Index Extends Losses
The Nifty Metal index extended losses on April 4 after closing in the red in the previous trading session. At the day’s low the index has declined over 6 per cent or from its April 2 levels of 9,080.05.
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Vedanta Shares Emerge As Top Loser In Early Trade
Shares of Vedanta Ltd emerged as the top loser in early trade, declining over 8 per cent to an intraday low of Rs 403.45 apiece on the NSE. Other major losers included Hindustan Copper, Hindalco Industries Ltd and National Aluminium Company Ltd which traded lower by as much as 5.9 per cent at the time of writing this story.
Vedanta Share Price History
In a year shares of Vedanta Ltd have gained over 33 per cent on the NSE. On a year-to-date basis the stock has fallen over 8 per cent. In six months shares of the company have declined more than 20 per cent and in a month the scrip has climbed over 2 per cent. In five days the company’s stock has tumbled more than 13 per cent.
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All the constituents of the Nifty Metal traded in the red in early trade. Other major losers included NMDC Ltd, Hindustan Zinc Ltd, Welsun Corporation, Lloyds Metals And Energy Ltd up to 4.6 per cent on the NSE.
Steel Not Stellar Anymore?
The correction seen in the prices of index heavyweights such as Tata Steel and JSW Steel Ltd dragged the index lower. Notably, shares of the two major domestic steel makers (Tata Steel and JSW Steel) hold a weightage of 19.48 per cent and 15.41 per cent. The two steel manufacturing stocks declined as much as 5 per cent in early trade on the NSE.
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Other steel sector players such as Jindal Steel Ltd, Steel Authority of India Ltd, and Jindal Steel & Power Ltd traded lower by as much as 3.83 per cent.
Why Are Metal Stocks Falling
While metals such as steel, aluminium and copper are exempt from Trump’s reciprocal tariffs. There is uncertainty regarding the metal stock remaining tariff-exempt in the future. Additionally, experts have also mentioned the looming fear of potential counter-measures by other US trading partners such as China and Europe, sparking worries of a trade war. These concerns are likely to have impacted investor sentiment negatively leading to the correction seen in metal stocks today.
