MumbaiUS President Donald Trump has announced a “25 percent tariff” on all steel and aluminum imports coming to the US. This led to a decline in the domestic benchmark index on Tuesday. Sensex and Nifty crashed. By 2 pm, Sensex was 1.33 per cent to 76,284.36. The Nifty was down by 1.38 per cent to 23,059.25 points.
The Indian Steel Association (ISA) has expressed deep concern over the US decision to put tariffs on steel imports. It has appealed to the Government of India to remove long-standing anti-dumping and counterwalling charges and exemption from these restrictions. The new tariff is expected to reduce steel exports by 85 percent.
The ISA warned that these tariffs could cause a large amount of steel surplus, which will probably be filled in the Indian market. Eicher Motors and Apollo Hospitals recorded the most decline on Nifty in response to the third quarter financial results. The NSE recorded the most decline in Nifty Realty and Nifty Auto. Nifty media and Nifty Pharma also recorded a significant decline in early trade.
According to experts, investors are also scared due to lack of global signals and strong domestic triggers of the stock market. He said that investors would closely monitor the global market trends, crude oil prices and institutional flows for the forward direction. On the daily chart, the Nifty has created a recession candlestick, indicating a negative sentiment. The index is facing major resistance at 23,460 and the brakeout above this level may promote further move towards 23,550 and 23,700.
