Market Opens Lower Amid Trump’s Tariff Threats, Steel Stocks Decline
The Indian stock market opened lower on Monday following US President Donald Trump’s announcement that he would impose a new 25 percent tariff on all steel and aluminum imports, including those from Canada and Mexico. The tariffs are set to be imposed starting Monday (US time), with additional duties expected later in the week. Trump also indicated that reciprocal tariffs would be announced, set to take effect almost immediately.
At 9:30 am, the BSE Sensex was trading at 77,575.91, down by 284.28 points (0.37 percent), while the Nifty was down 87.95 points (0.37 percent), at 23,472.00.
The Indian Rupee also weakened by 53 paise to 87.95 against the US Dollar.
Steel stocks, particularly JSW Steel and Tata Steel, were among the biggest decliners in the Nifty index, as Trump’s tariff threat caused concerns for the steel sector. The Nifty Pharma index was also in the red, with fears that the tariffs could extend beyond metals and affect pharmaceutical products.
Despite the overall downtrend, sectors like Nifty Auto and Nifty PSU Bank showed some resilience, closing in positive territory.
Stock Movements and Analysis:
- Major gainers on the Nifty included Bharti Airtel, Britannia, Hero MotoCorp, SBI, and Kotak Mahindra Bank.
- After the negative opening, analysts predict support levels for the Nifty at 23,500, 23,400, and 23,300. On the upside, resistance levels are seen at 23,700, 23,800, and 24,000.
- Bank Nifty charts indicate support at 50,000, followed by 49,700 and 49,500, with initial resistance at 50,300, followed by 50,500 and 50,800.
Global Market Impact:
- Asian markets saw mixed performance, with South Korean stocks remaining nearly unchanged as gains in the tech sector offset losses in steel and auto shares. Concerns about the impact of Trump’s tariffs were evident, particularly on industries like steel.
Institutional Activity:
- Foreign institutional investors (FIIs) sold equities worth Rs 470 crore on February 7, while domestic institutional investors (DIIs) purchased equities worth Rs 454 crore.
As Trump’s tariff announcement shakes global markets, Indian equities are feeling the impact, with heightened volatility expected in the coming days.
