Synopsis
On February 11, the domestic benchmark indices opened lower following US President Donald Trump's announcement of 25% tariffs on all steel and aluminium imports. The Indian Steel Association has expressed concern over the impact of these tariffs, which could significantly affect steel exports.Key Takeaways
- Domestic indices opened lower due to US tariffs.
- Trump's tariffs are set at 25% for steel and aluminium.
- Indian Steel Association seeks exemptions and policy adjustments.
- Expected reduction in steel exports to the US by 85%.
- Market sentiment is cautious amidst global cues.
Mumbai, Feb 11 (NationPress) The domestic benchmark indices started the day on a negative note on Tuesday, as US President Donald Trump officially declared intentions to enforce 25% tariffs on all steel and aluminium imports entering the United States "without exceptions or exemptions".
At approximately 9:32 am, the Sensex witnessed a drop of 172.29 points or 0.22%, settling at 77,138.51, while the Nifty declined by 56 points or 0.24%, reaching 23,324.80.
The Indian Steel Association (ISA) has conveyed serious apprehension regarding the US's decision to impose tariffs on steel imports, urging the Indian government to advocate for the elimination of longstanding anti-dumping and countervailing duties and to secure exemptions from these restrictive policies.
The impending tariffs are projected to reduce steel exports to the US by 85%. ISA has cautioned that these tariffs could result in a considerable steel surplus, likely inundating the Indian market.
In reaction to their third-quarter financial outcomes, Eicher Motors and Apollo Hospitals experienced the most significant declines on the Nifty.
The Nifty Realty and Nifty Auto sectors faced the steepest declines on the NSE, with Nifty Media and Nifty Pharma also showing notable drops during early trading.
Experts suggest that the stock market's movement reflects a cautious sentiment, shaped by global indicators and a lack of robust domestic catalysts.
Investors are expected to keenly observe global market trends, fluctuations in crude oil prices, and institutional movements for additional guidance.
The daily chart reveals that Nifty has formed a bearish candlestick, indicating negative sentiment. The index encounters significant resistance at 23,460, with a breakout above this level potentially facilitating further gains towards 23,550 and 23,700.
Institutional flows remain a pivotal element in market sentiment. On February 10, foreign institutional investors (FIIs) divested equities valued at Rs 2,463 crore, while domestic institutional investors (DIIs) acquired equities worth Rs 1,515 crore.
“These transactions will be closely observed for their influence on market direction. Overall, traders are recommended to exercise caution and await confirmation of price action at crucial levels prior to initiating new positions,” stated Aakash Shah from Choice Broking.
The developments in global markets and the prevailing uncertainty surrounding the tariffs are expected to be decisive in shaping market sentiment, experts noted.
