Synopsis
On February 11, the Indian stock market saw a steep decline as the Sensex and Nifty dropped over 1.3% amid the announcement of a 25% tariff on steel and aluminum imports by US President Donald Trump. This move has raised concerns over potential trade wars and economic repercussions.Key Takeaways
- Sensex fell nearly 1,000 points.
- Nifty slipped below 23,100.
- Tariffs increased from 10% to 25% on aluminum.
- Canada, Mexico, and Brazil lost tariff exemptions.
- ISA calls for removal of anti-dumping duties.
Mumbai, Feb 11 (NationPress) The Indian stock market faced a significant downturn on Tuesday, with the Sensex and Nifty declining by more than 1.3 percent during the afternoon session, following the announcement by US President Donald Trump regarding a 25 percent tariff on all steel and aluminum imports.
During the afternoon trading hours, the Sensex plummeted nearly 1,000 points, or 1.25 percent, reaching approximately 76,300, while the Nifty dropped 300 points, or 1.3 percent, falling below the 23,100 mark.
The broader market experienced even steeper losses, with midcap and smallcap indices declining by as much as 3.5 percent, raising concerns that extend beyond blue-chip stocks.
This market downturn follows the executive orders signed by former US President Donald Trump on February 10, which are set to expand tariffs on steel and aluminum imports starting March 12.
This decision raised aluminum tariffs from 10 percent to 25 percent and reinstated a 25 percent tariff on steel imports.
Key trading partners such as Canada, Mexico, and Brazil lost their exemptions from the tariffs, heightening fears of a broader trade war and its potential impact on global economic growth.
In the meantime, the Indian Steel Association (ISA) has voiced significant concern regarding the US's decision to impose these tariffs, urging the Indian government to advocate for the removal of long-standing anti-dumping and countervailing duties and to seek exemptions from these restrictive measures.
The newly imposed tariffs are projected to reduce steel exports to the US by 85 percent, potentially leading to a substantial surplus of steel that could inundate the Indian market, the ISA warned.
Experts suggest that the market's reaction reflects a cautious sentiment, driven by global influences and a lack of strong domestic catalysts.
Institutional flows are a critical factor in market sentiment, with Foreign Institutional Investor (FII) outflows reaching ₹12,643 crore in February alone.
