The Indian stock market opened lower on Monday after US President Donald Trump announced a 25% tariff on all steel and aluminum imports. The tariffs will take effect immediately and include imports from Canada and Mexico. Trump revealed the new tariffs in a press briefing aboard Air Force One on Sunday.
He said additional import duties are expected later in the week. The announcement has triggered global market volatility and sparked concerns over a potential trade war. As of 9:30 AM IST, the Sensex had dropped by 284.28 points (0.37%).
The Nifty declined by 87.95 points (0.37%). The Indian Rupee weakened by 53 paise to 87.95 against the US Dollar. This reflects increased uncertainty in global trade and currency markets.
The tariff announcement heavily impacted Nifty Metal stocks, leading the losses. The pharmaceutical sector also faced declines amid fears that US tariffs could extend to pharma exports. However, some sectors showed resilience.
Sensex reacts to Trump tariff shock
Nifty Auto and Nifty PSU Bank indices managed to stay in the green. Major gainers on the Nifty included Bharti Airtel, Britannia Industries, Hero MotoCorp, State Bank of India, and Kotak Mahindra Bank.
Hindalco Industries was among the major losers. Hardik Matalia, Derivatives Analyst at Choice Broking, said Nifty could find support at 23,400 and 23,300. Immediate resistance is at 23,700.
Further resistance levels are at 23,800 and 24,000. For Bank Nifty, support levels are expected at 50,000, 49,700, and 49,500. Resistance levels are projected at 50,300, 50,500, and 50,800.
Asian stock markets showed mixed reactions to Trump’s announcement. South Korean stocks remained largely unaffected as tech sector gains balanced losses in steel and auto stocks. However, concerns persist about the broader economic impact of the US administration’s protectionist policies.
FIIs offloaded equities worth Rs 470 crore, reflecting caution amid growing trade tensions. In contrast, DIIs remained net buyers, purchasing equities worth Rs 454 crore.
