Vedanta stock also slipped 1.46% to Rs 370.20 in early deals today against the previous close of Rs 375.70 on BSE. Market cap of the firm slipped to Rs 1.44 lakh crore. Shares of metal firms such as JSW Steel, Tata Steel, NMDC, SAIL, NMDC, Vedanta, Hindalco and Jindal Steel plunged in early deals on Wednesday after US President Donald Trump imposed 104 percent tariff on Chinese goods. The move came after China imposed retaliatory tariff of 34% on US imports from April 10. The additional levy on China singed metal counters on BSE and NSE.
Nifty Metal index slipped 2.25% to 7788 in early deals today. The index has declined 14% in a week after Trump initiated tariff war on trading partners on April 2. Similarly, BSE metal index sinked 533 pts to 26,473 in the current session. The metal index on BSE slumped 13.74% in the last one week.
Meanwhile, JSW Steel shares slipped 0.82% to Rs 946 against the previous close of Rs 954.75 on BSE. Market cap of JSW Steel fell to Rs 2.31 lakh crore.
Similarly, Tata Steel shares fell 2.5% to Rs 126.95 on BSE. Market cap of the firm slipped to Rs 1.58 lakh crore.
Another metal stock NMDC fell 3% to Rs 59.74 against the previous close of Rs 61.59 on BSE. Market cap of NMDC fell to Rs 52,443 crore.
Shares of SAIL, another iron and steel producer, fell 2.67% to Rs 102 against the previous close of Rs 104.80.
Vedanta stock also slipped 1.46% to Rs 370.20 in early deals today against the previous close of Rs 375.70 on BSE. Market cap of the firm slipped to Rs 1.44 lakh crore.
Shares of aluminium maker Hindalco slipped 1.68% to Rs 555.80 on BSE. Market cap of the firm fell to to Rs 1.25 lakh crore.
Earlier, the US maintained a tariff rate of 10 percent on Chinese imports. However, on April 2 President Trump introduced a set of “reciprocal tariffs,” pushing the rate to 44 percent.
Total tariff burden on Chinese imports now stood at 54 percent. In retaliation, China responded with a 34 percent tariff on US goods. However, the United States retaliated by imposing an extra 50 percent tariff on Chinese imports, pushing the cumulative tariff rate to an unprecedented 104 percent.
The global economy is on the brink of a recession and a full blown out trade war ignited by President Trump's tariffs on Liberation Day. An additional tariff on China has extended losses in markets worldwide on fears of a trade war hitting manufacturing both in India and China.