Share markets in India are presently trading marginally lower. Sectoral indices are trading on a mixed note with stocks in the consumer durables sector and IT sector witnessing maximum selling pressure.
The BSE Sensex is trading down by 66 points (down 0.2%), while the NSE Nifty is trading down by 25 points (down 0.3%). The BSE Mid Cap index is trading up by 0.2%, while the BSE Small Cap index is trading up by 0.4%. The rupee is trading at 65.01 to the US$.
In the news from the steel sector, as per a leading financial daily, India has requested the US to exempt it from the hefty tariffs on steel and aluminum imports. It is also vetting other options to deal with the issue.
Last month, Trade Minister Suresh Prabhu had said that India will bilaterally discuss import curbs on steel with the United States.
The development comes as US President Donald Trump followed through on his pledge to impose stiff tariffs on imported steel and aluminum, while excluding Canada and Mexico and leaving the door open to sparing other countries on the basis of national security. Last month, he signed two proclamations that levied 25% tariff on steel and 10% tariff on aluminum imports from all countries except Canada and Mexico.
As for domestic markets, the above actions by Trump has led Indian metal stocks to trade on a volatile note lately.He also warned there would be more tariffs coming, saying he plans to proceed with what he has called reciprocal taxes on imports from countries that charge higher duties on US goods than the US now charges on their products.
India’s steel industry was just coming out of a rough patch. Demand was picking up. Steel prices were on the rise. Buyers were lining up to pick up stressed assets. With the expected pick up in the investment cycle, the sector was on the upswing. And steel exports were on a roll, as can be seen from the chart below: