Vedanta, Tata Steel, Hindalco, NALCO Shares Fall Up To 7% As US Dollar Hits Record High


Last Updated:

Shares of Vedanta, Tata Steel, NMDC and others fell up to 7% in early deals on Monday after US President Donald Trump imposed tariffs

Vedanta, NALCO, NMDC shares tank

Shares of Vedanta dropped 7% to Rs 410 on Monday’s trade on the BSE, following a surge in the US dollar against the Indian rupee and other global currencies.

The Indian rupee weakened beyond Rs 87 per US dollar for the first time after President Trump imposed tariffs on the country’s largest trading partners, leading to a spike in the US dollar.

Trump followed through with his threats, imposing 25% tariffs on Canada and Mexico, and a 10% levy on China, citing the need to address migration and fentanyl issues.

Since China is the largest importer of metals globally, any trade tensions involving the country could significantly impact the global demand for metals, adding more uncertainty for Indian metal companies.

In response, Canada and Mexico announced retaliatory measures, while China revealed plans to challenge the tariffs at the World Trade Organization. These tariffs, outlined in three executive orders, are set to take effect on Tuesday.

Meanwhile, the US dollar hit a record high against the Chinese yuan, its strongest level against the Canadian dollar since 2003, and its peak against the Mexican peso since 2022.

A stronger US dollar is viewed negatively for India’s metal sector as it makes exports less competitive by raising prices for international buyers and increases the cost of imported raw materials, which squeezes profit margins for domestic producers.

Metal Stocks Drop

Metal stocks took a hit on February 3, weighed down by the dollar index surge following Trump’s tariff moves, which sparked concerns of a widening trade war among major economies. Prices of base metals also dropped on the London Metal Exchange, adding to the pain for metal stocks.

Shares of NALCO and NMDC were hit hardest, falling around 6% each, followed by Tata Steel, Jindal Stainless, Hind Copper, Hindalco, and SAIL, which declined 3-5%. These sharp drops across metal stocks contributed to a 3% decline in the Nifty Metal index.

News business » markets Vedanta, Tata Steel, Hindalco, NALCO Shares Fall Up To 7% As US Dollar Hits Record High

Umair

Muhammad Umair is a passionate content creator, web developer, and tech enthusiast. With years of experience in developing dynamic websites and curating engaging content, he specializes in delivering accurate, informative, and up-to-date articles across diverse topics. From gaming and technology to crypto and world news, Umair's expertise ensures a seamless blend of technical knowledge and captivating storytelling. When he's not writing or coding, he enjoys gaming and exploring the latest trends in the tech world.

Related Posts

Kendrick Lamar to team up with Rihanna for new hit?

Kendrick Lamar to team up with Rihanna for new hit? Kendrick Lamar, Grammy-winning rapper, is now making big moves after his unforgettable Super Bowl performance, as he’s reportedly teaming up…

Kourtney Kardashian, Travis Barker get cosy at Blink-182 Super Bowl party

Kourtney Kardashian and Travis Barker celebrate romantic night out ahead of Super Bowl Travis Barker and Kourtney Kardashian packed on PDA at the FanDuel party held by Spotify in New…

Leave a Reply

Your email address will not be published. Required fields are marked *

You Missed

‘Buy Now, Pay Later’ giant Klarna to adopt crypto, says CEO

  • By Umair
  • February 9, 2025
  • 1 views
‘Buy Now, Pay Later’ giant Klarna to adopt crypto, says CEO

TradFi will keep its distance until DeFi becomes a manageable risk

  • By Umair
  • February 9, 2025
  • 1 views

Crypto VC mulls whether market is 'near the bottom'

  • By Umair
  • February 9, 2025
  • 2 views

Arthur Hayes Warns of Bitcoin Crash if US Creates Strategic BTC Reserve

  • By Umair
  • February 9, 2025
  • 2 views
Arthur Hayes Warns of Bitcoin Crash if US Creates Strategic BTC Reserve

Trump Plans to Send $8 Billion in Arms to Israel, Bypassing Some Lawmakers

  • By Umair
  • February 9, 2025
  • 2 views
Trump Plans to Send $8 Billion in Arms to Israel, Bypassing Some Lawmakers

Robert Kiyosaki: Bitcoin Is Safer Than US Dollar—He’s Buying More BTC

  • By Umair
  • February 9, 2025
  • 3 views
Robert Kiyosaki: Bitcoin Is Safer Than US Dollar—He’s Buying More BTC