Metal stocks see heavy selling pressure after Trump tariffs; Vedanta plunges 8%

New Delhi: Shares of metal companies witnessed heavy selling pressure, with conglomerate Vedanta plunging over 8 per cent a day after President Donald Trump's sweeping reciprocal tariffs barrage reignited the fears of global trade war.

Vedanta's stock tumbled by 8.45 per cent to Rs 402.40, Tata Steel by 7.78 per cent to Rs 141.70, National Aluminium Company by 7.38 per cent to Rs 159.90, Hindalco Industries by 7.16 per cent to Rs 606, and NMDC by 7.05 per cent to Rs 65.53 apiece on the BSE.

Among others, the scrip of Jindal Stainless declined by 7.02 per cent to Rs 553.05, Hindustan Zinc by 7.01 per cent to Rs 427.20 per piece, Steel Authority of India by 5.32 per cent to Rs 112.15, Jindal Steel & Power by 5.59 per cent to Rs 854.35, and JSW Steel by 3.59 per cent to Rs 1,005.50 on the exchange.

The drop in metal stocks is attributed to the higher-than-expected reciprocal tariffs by the Trump administration, which have fuelled recession fears and raised concerns that the steep increase in US tariffs will hurt global economic growth.

In the mid-session trade, the BSE Metal index plummeted 1,849.98 points or 6.09 per cent to 28,525.57, while the 30-share benchmark tanked 804.28 points or 1.05 per cent to 75,491.08.

"The existing 25 per cent US tariff on steel and aluminum remains unchanged, boosting US domestic prices. However, exporters from Vietnam, Japan, and South Korea are pivoting to India and the Middle East, exacerbating India's challenge with cheap steel imports," Amar Ambani, Executive Director at Yes Securities, said.

The US administration on Wednesday has announced 26 per cent reciprocal tariffs on India, saying New Delhi imposes high import duties on American goods.

Last month, the United States has proposed a 25 per cent tariffs on all steel and aluminium imports into the US.