Indian metal stocks witnessed a sharp decline [1], with Tata Steel and other major players tumbling by up to 19% as global trade uncertainties and growth concerns rattled investor sentiment.
The downturn was triggered by fears surrounding the impact of reciprocal tariffs imposed by the U.S. on steel and aluminum imports, which have raised doubts about export prospects and overall demand recovery. Tata Steel saw its shares drop by 11.56%, while NMDC plunged 18.2%. Other metal stocks, including Jindal Stainless, National Aluminium Company (NALCO), Hindustan Zinc, and Vedanta, also suffered losses of nearly 10% each.
The unchanged 25% U.S. tariff on steel and aluminum is expected to inflate domestic prices in the U.S., affecting global competitiveness. Indian producers now face increased pressure from cheap imports, particularly from countries like Vietnam, South Korea, and Japan, which are shifting their focus to markets like India and the Middle East.
Analysts warn that the situation could further strain domestic players already grappling with thinning margins and volatile production volumes. A report by Jefferies noted that while the U.S. accounts for only 4% of India’s steel exports, sentiment remains critical, especially for companies like Hindalco, whose subsidiary Novelis generates 13–15% of its consolidated EBITDA from U.S.-linked businesses.
Market experts suggest that the ongoing trade tensions could prolong uncertainty, impacting investor confidence and sectoral growth projections.
Sources:
[1] Tata Steel, other metal stocks crash up to 19% amid trade wars https://www.motilaloswal.com/news/buzzing-stocks/2463