Tracking negative global cues, especially resurfacing the US-China trade war, the Nifty Metal index declined 2% in the afternoon session on Monday.
Worries regarding the US-Sino trade war resurfaced after Trump on Sunday, on his social media account (Twitter), informed that he will hike tariffs on $200bn worth Chinese inward shipment due to slow development in trade talks.
As per media reports, Trump said in a Sunday afternoon Twitter post that the current 10% tariffs on $200bn worth of Chinese goods will rise to 25% on Friday. He also threatened to impose 25% levies on an additional $325bn of Chinese goods “shortly.”
Further, the index’s fall could also be attributed to heavy selling pressure in Jindal Steel, JSW Steel, SAIL, Hindalco, and Tata Steel.
Shares of Jindal Steel and JSW Steel, which declined 5% and 4% each, were leading the index’s fall. Shares of SAIL and Hindalco also contributed to the fall, declining 3% each. Shares of Tata Steel, Hindustan Copper, and Jindal Stainless (Hisar) also dropped 2% each. NMDC, Vedanta, Welspun Corp, and APL Apollo, fell 1% each.
Meanwhile, equity benchmark indices were trading in the red on Monday with the Sensex falling 312 points at 38,654 levels. The Nifty dropped 97 points at 11,614 levels, struggling to hold its key level 11,600.
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