Stock Market Trades Lower as Trump Threatens New Steel, Aluminium Tariffs
Domestic benchmark indices opened weak on Monday after US President Donald Trump declared his plans to impose a new 25 percent tariff on all imports of steel and aluminium, including those from Canada and Mexico. The tariffs are expected to come into effect from Monday US time, and more duties would be seen later in the week. On Sunday, Trump made these public remarks aboard Air Force One, hinting that he would also impose reciprocal tariffs on other imports, almost right now.
The BSE Sensex was trading at 77,575.91 at 9:30 am; it had fallen by 284.28 points or 0.37%. The NSE Nifty had dipped 87.95 points or 0.37% to 23,472.00. The rupee also eased 53 paise to 87.95 against the US dollar.
Most Nifty stocks traded lower, with JSW Steel and Tata Steel among the worst hit following the tariff announcement. Nifty Pharma also slipped amid concerns that the US could extend its protectionist policies to pharmaceutical products. However, Nifty Auto and Nifty PSU Bank showed resilience, trading in the green.
Bharti Airtel, Britannia, Hero MotoCorp, SBI, and Kotak Mahindra Bank were some of the top gainers in Nifty.
Technical analyst Hardik Matalia from Choice Broking said that Nifty may find support at 23,500, followed by 23,400 and 23,300, while resistance levels are seen at 23,700, 23,800, and 24,000. On the other hand, Bank Nifty may find support at 50,000, 49,700, and 49,500, while resistance is seen at 50,300, 50,500, and 50,800.
In Asian markets, South Korean stocks remained steady as gains in tech stocks offset declines in steel and auto shares amid concerns over Trump’s sweeping tariff plans.
Foreign institutional investors (FIIs) sold equities worth ?470 crore on February 7, while domestic institutional investors (DIIs) purchased stocks worth ?454 crore. The market is expected to remain volatile as investors assess the impact of US trade policies on global markets.
