Market Impact on Indian Metal Sector
Indian metal stocks experienced a downturn on June 2, 2025, following the United States' decision to double import tariffs on steel and aluminum from 25% to 50%, effective June 4, 2025. The move, announced by US President Donald Trump, aims to bolster domestic industries but has raised concerns over global trade tensions and their impact on exporters. The announcement led to immediate reactions in the Indian stock market, particularly affecting major metal companies.
The Nifty Metal Index also saw a decline of 1.6%, closing at 9,047.95 on June 2, 2025.
Broader Market Sentiment
The tariff hike not only impacted metal stocks but also influenced broader market indices. On June 2, 2025:
The BSE Sensex fell by 484 points to 80,966, while the Nifty dropped 135 points to 24,615. Investors expressed concerns over potential retaliatory measures and the overall effect on global trade dynamics.
The US decision to raise tariffs on steel and aluminium imports has triggered a mixed response in the Indian stock market, especially in the metal sector. Investors are encouraged to remain informed and cautious before making investment decisions.